The rupee rebounded from its all-time low, gaining 29 paise to reach 83.32 against the US dollar during early trade on Tuesday. At the interbank foreign exchange, it opened at 83.33 and strengthened to touch 83.32 against the greenback in initial deals, marking a 29 paise increase from its previous close. On Friday, the rupee had depreciated by 48 paise to settle at a historic low of 83.61 against the American currency. Forex and equity markets remained closed on Monday due to Holi.
Market analysts noted that India’s record forex reserves provide a buffer, allowing the Reserve Bank to manage any downside pressure on the rupee. The country’s forex reserves rose by USD 6.396 billion to USD 642.492 billion for the week ending March 15, as per the Reserve Bank’s announcement on Friday. In the previous reporting week, overall reserves had increased by USD 10.47 billion to USD 636.095 billion. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell by 0.01 percent to 103.79.
Brent crude futures, the global oil benchmark, saw a slight decline of 0.07 percent to USD 86.69 per barrel. In the domestic equity market, the 30-share BSE Sensex traded 265.68 points or 0.36 percent lower at 72,566.26 points. The broader NSE Nifty also dropped by 60.95 points or 0.28 percent to 22,035.80 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, offloading shares worth Rs 3,309.76 crore on a net basis, according to exchange data.
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