The Indian rupee showed some signs of recovery today as it gained 5 paise against the US dollar during trading. This comes after facing declines over a couple of sessions, mainly due to foreign equity investors selling off and the strengthening US dollar.
Forex traders noted that weak global equity markets and the notable increase in crude oil prices were the factors putting pressure on the currency. At the start of today’s trading session, the rupee opened at 83.23 against the US dollar. Remained within a range of 83.21 to 83.24 throughout. Eventually, it settled at 83.23 against the dollar, marking a gain of 5 paise from its closing rate.
In total, over the two sessions, the rupee experienced a loss of 34 paise. Yesterday it ended with a decline of 15 paise at 83.28 against the US dollar after experiencing a drop of 19 paise on the day. These downward movements were primarily driven by a US dollar supported by record US Treasury yields and reaching its highest level in ten months following hints from Federal Reserve policymakers about an extended interest rate hike cycle.
In the meantime, the dollar index, which gauges how well the US dollar is doing compared to a selection of six currencies, saw an uptick of 0.04 percent, reaching a level of 106.27.