Mumbai: The Indian rupee recovered from its lowest-ever level and appreciated against the US dollar in early trade on Tuesday. As per forex traders, weakening of the American currency, positive inflation numbers in India, positive trend in domestic equity markets and easing crude oil prices supported the Indian currency. But, sustained outflow of foreign funds continued to play a negative role.
At the interbank foreign exchange, the Indian rupee opened at 86.57 and pared further losses to trade at 86.49 against the greenback in initial deals, 21 paise higher from its previous close. On Monday, the rupee logged its steepest single-day fall in nearly two years and ended the session 66 paise down at its historic low of 86.70 against the US dollar. The fall of 66 paise in one session was the steepest since February 6, 2023, when the unit had lost 68 paise.
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The Indian currency has plunged more than Re 1 in the past two weeks from the closing level of 85.52 on December 30. It had breached the 85-per-dollar mark for the first time on December 19, 2024.
Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.37 per cent down at 109.41.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,892.84 crore on Monday. According to the government data, retail inflation declined to a four-month low of 5.22 per cent in December
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