Rupee rebounds 48 paise from record low, trades at 91.57 against US dollar

The Indian rupee recovered from its record low and gained 48 paise to trade at 91.57 against the US dollar in early trade on Thursday, supported by positive momentum in domestic equity markets. 

However, rising crude oil prices, a strengthening US currency and persistent selling of Indian equities by foreign investors amid escalating tensions in the Middle East continued to keep the local unit under pressure, as per analysts. 

At the interbank foreign exchange market, the Indian currency opened at 92.16 and touched an intraday high of 91.30 before trading at 91.57 against the American currency, marking a recovery of 48 paise from its previous close. 

The domestic currency had slumped 56 paise to settle at an all-time low of 92.05 against the US dollar on Wednesday, after declining 41 paise on Monday. The forex market remained closed on Tuesday on account of Holi. 

Dollar strengthens, oil rises 

Meanwhile, the US Dollar Index, which measures the greenback’s strength against a basket of six currencies, was trading 0.20% higher at 98.93. 

In commodities, Brent Crude climbed 2.78% to $83.66 per barrel in futures trade, as concerns mounted over potential disruptions to oil flows through the Strait of Hormuz. 

The conflict involving the United States, Israel, and Iran intensified on Thursday, with reports of Iranian missiles striking Israel after an American submarine sank an Iranian warship a day earlier. Iran has also threatened to target military and economic infrastructure across the region. 

Experts warn that India could face a sharp rise in its import bill if crude prices continue to climb, given that nearly 85% of the country’s fuel requirements are met through imports. 

Equities rise, FIIs remain sellers 

On the domestic equity front, the BSE Sensex surged 550.27 points to open at 79,666.46, while the Nifty 50 climbed 171.45 points to 24,651.95 in early trade. 

In Asia, South Korea's Kospi rebounded sharply and jumped 10%. Japan's Nikkei 225, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index were also trading higher. 

Foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹8,752.65 crore on Wednesday, according to exchange data.