Rupee Settles 10ps Higher At 87.21/$

Mumbai: The rupee recovered from steep losses and settled with a gain of 10paise at 87.21 against the US dollar on Tuesday as the American currency index fell to its four-month low level and crude oil prices also stayed subdued. A volatile trend in domestic equity markets and outflow of foreign capital amid fear of recession in the US and trade-related uncertainties restricted the recovery in the local currency, forex traders said. At the interbank foreign exchange, the rupee opened at 87.37 and touched the day’s low of 87.39 against the greenback. The unit also strengthened up to 87.17 before ending the session at 87.21 against the dollar, 10paise higher compared to its previous closing level. On Monday, the rupee crashed 36paise to close at 87.31 against the US dollar. Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, attributed the rupee’s recovery to weak tone in the US dollar index and a decline in the US 10-year treasury yields. He said that weak crude oil prices and mixed-to-positive domestic markets supported the rupee but FII outflows capped sharp gains. Going further, Choudhary said, “Traders may take cues from JOLTS job openings data from the US. Investors may remain cautious ahead of the inflation data from the US and India this week.