E-Paper
Rupee recovers after hitting an all-time low
The rupee closed at 76.67, up 0.22%, from its previous session. It recorded its previous all-time low on April 16, when it slumped to 76.87 against the US dollar.
The rupee touched an all-time low of 76.92 against the US dollar on Wednesday but recovered soon and strengthened by late-afternoon triggered by a pullback in domestic stock markets and hopes of increased foreign investments post a multi-billion-dollar deal between Reliance Industries Ltd and social media giant Facebook.
The rupee closed at 76.67, up 0.22%, from its previous session. It recorded its previous all-time low on April 16, when it slumped to 76.87 against the US dollar.
Over the past week, the US dollar has been strengthening against a basket of currencies as investors fled to the greenback, considered a safe haven, due to weakening risk appetite, further exerting pressure on the rupee.
Rahul Gupta, head of research - currency, Emkay Global Financial Services, said: “USD/INR spot breached fresh record high of 76.90, however, it didn’t sustain and fell on dollar selling ahead of the Facebook and Reliance deal. The Facebook investment will hit forex market in tranches either end of this month or next month.”
Meanwhile, Indian stock markets ended higher on Wednesday. The BSE Sensex ended at 31,379.55, up 2.42% while the 50-share index Nifty was at 9,187.30, up 2.29%.
