Rupee rebounds 21 paise to 88.56 against US dollar on easing crude prices
Mumbai: The rupee recovered from its record-low levels and appreciated by 21 paise to 88.56 against the US dollar in early trade on Tuesday, supported by a decline in global crude oil prices.
Forex traders said, however, that the local currency continues to face pressure from a strong US dollar and persistent foreign fund outflows from domestic markets.
At the interbank foreign exchange market, the rupee opened at 88.55 and was trading at 88.56 per dollar in early deals, up 21 paise from Monday’s closing level of 88.77.
On Monday, the domestic unit had slipped for the third straight session, ending just shy of its all-time closing low of 88.81, recorded on October 14.
Meanwhile, the dollar index — which measures the greenback’s strength against a basket of six major currencies — inched up 0.04% to 99.75. Brent crude futures, the global oil benchmark, declined 0.32% to USD 64.68 per barrel.
In domestic equities, the BSE Sensex dropped 55 points to 83,923.48 in early trade, while the NSE Nifty fell 40.95 points to 25,722.40.
Foreign institutional investors (FIIs) sold equities worth Rs 1,883.78 crore on Monday, according to exchange data.
Separately, a monthly survey released on Monday showed India’s manufacturing activity expanded at a faster pace in October, driven by GST relief measures, productivity gains, and higher tech investment, even as export growth slowed.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 59.2 in October from 57.7 in September, signaling a stronger improvement in the sector’s overall health.
