Mumbai: The rupee recovered 15 paise to 88.60 against the US dollar in early trade on Thursday, after hitting an all-time low, buoyed by weakness in the American currency in overseas markets.
Forex traders said the rupee has come under renewed pressure this week due to multiple factors, including the H-1B visa fee hike, Trump-era tariffs, and continued foreign fund outflows, which have weighed on investor sentiment.
In the interbank market, the rupee opened at 88.65 and strengthened to 88.60, a 15-paise gain from Wednesday’s close of 88.75—the currency’s lowest-ever closing level. Traders noted ongoing concerns over global trade uncertainties and the impact of higher US visa fees on India’s IT services exports.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.13% at 97.75, while Brent crude fell 0.36% to USD 69.06 per barrel in futures trading.
On the domestic equity front, the Sensex opened 141.32 points lower at 81,574.31, and the Nifty slipped 22.4 points to 25,034.50. Foreign Institutional Investors sold equities worth Rs 2,425.75 crore on Wednesday, according to exchange data.
“USD/INR is testing key levels, with resistance at 89.00–89.20 and support at 88.40. The recent rise is driven more by tariffs and visa fee hikes than broad dollar strength. A close below 88.20 may signal a trend reversal, while progress on trade talks or a softer dollar could support a rupee rebound,” said Amit Pabari, MD of CR Forex Advisors.
Meanwhile, Commerce and Industry Minister Piyush Goyal is in the US for trade talks, accompanied by senior ministry officials, including India’s chief negotiator Rajesh Agrawal. Goyal has met his US counterpart following recent discussions in New Delhi between US Chief Negotiator Brendan Lynch and Agrawal on a proposed bilateral trade agreement.
