January 19, 2025 12:53 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Kolkata court convicts civic volunteer Sanjoy Roy in RG Kar rape-murder case | Saif was stabbed repeatedly, he tried to protect Taimur and Jeh: Kareena Kapoor Khan records statement with police | Escaped death by 20-25 minutes: Sheikh Hasina alleges opposition wanted to kill her | Cabinet's decision on 8th Pay Commission will improve quality of life, give boost to consumption: PM Modi | 'It has been an incredibly challenging day': Kareena Kapoor Khan requests privacy after Saif Ali Khan's stabbing incident | 'Distorting history': Mamata slams Mohan Bhagwat over his Ram Temple consecration 'marking true independence' remark | Saif Ali Khan stabbing incident: Actor who received six wounds is out of danger, one accused identified | ISRO creates history docking two Indian satellites in space | US-based short seller Hindenburg Research that targeted Adani Group and SEBI chairperson to be disbanded | Saif Ali Khan stabbed during burglary attempt at home, hospitalised; police probe on
Image courtesy: Pixabay

Rupee rebounds 8 paise to 86.62 against US dollar, recovering from historic low

| @indiablooms | Jan 14, 2025, at 08:20 pm

New Delhi: The rupee rebounded from its historic low, gaining 8 paise to settle provisionally at 86.62 against the US dollar on Tuesday, as the American currency retreated from record highs, Reuters reported.

A recovery in domestic equity markets, spurred by macroeconomic data, also supported the Indian currency despite persistent pressure from elevated crude oil prices and sustained foreign fund outflows.

At the interbank foreign exchange market, the rupee opened at 86.57, peaked at an intra-day high of 86.45, and finally closed at 86.62, an 8-paise improvement over Monday’s record low of 86.70.

On Monday, the rupee had recorded its steepest single-day decline in nearly two years, plunging 66 paise.

The previous largest fall, of 68 paise, occurred on February 6, 2023.

The rupee has lost over Re 1 in the past two weeks, slipping from its December 30 close of 85.52.

It breached the 85-per-dollar threshold for the first time on December 19, 2024.

Last Friday, it depreciated by 18 paise to 86.04 after a marginal 5-paise gain on Thursday. Earlier in the week, it had fallen by 6 paise and 17 paise in back-to-back sessions.

Analysts attributed the rupee's recovery to cooling retail inflation and a softer dollar index, which fell 0.39% to 109.38.

However, they cautioned that high crude oil prices, which remain elevated at USD 81.09 per barrel, could keep the currency under pressure.

On the domestic front, the 30-share BSE Sensex rose 169.62 points (0.22%) to close at 76,499.63, while the Nifty climbed 90.10 points (0.39%) to settle at 23,176.05.

However, foreign institutional investors (FIIs) continued to offload equities, selling Rs 4,892.84 crore on Monday.

Government data released on Tuesday revealed that wholesale price inflation (WPI) increased to 2.37% in December, driven by a surge in manufactured product prices, even as food prices eased.

Retail inflation, based on the Consumer Price Index (CPI), fell to a four-month low of 5.22% in December, providing potential leeway for the Reserve Bank of India (RBI) to consider reducing the key interest rate in upcoming policy reviews.

The CPI inflation eased for the second consecutive month after exceeding the RBI's 6% upper tolerance level in October, reflecting some relief in the food basket.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm
PM Modi on Budget 2024 Jul 23, 2024, at 09:30 pm
Close menu