Mumbai, March 10
The rupee rebounded from its all-time low in early trade on Tuesday, rising 7 paise to 92.14 as global oil prices fell after US President Donald Trump said the war with Iran may end soon.
A weaker greenback and a strong opening at the domestic equity markets further supported the local unit while heavy FII outflows capped sharp gains, forex traders said.
At the interbank foreign exchange, the rupee opened at 91.92 but fell to 92.14, up 7 paise from its previous close.
The rupee crashed to its all-time closing low of 92.21 against the US dollar on Monday, losing 39 paise during the session, as global crude oil prices saw a sharp spike, and the greenback strengthened.
“The rupee fell to its lowest (on Monday). But oil prices have since fallen after G-seven countries decided to utilise their strategic reserves to sell oil and bring prices down,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
“Later, Trump said the war could be over as soon as his goals have been accomplished. Later he also weighed on easing Russia sanctions and other measures to cool off oil prices. The Brent prices cooled off this morning in the Asian trade,” he said, adding that the rupee is expected to move within a range of 91.50 to 92.10.
Meanwhile, Brent crude, the global oil benchmark, was trading lower by 4.69 per cent at USD 94.32 per barrel in futures trade as the war between US-Israel and Iran intensified.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.26 per cent lower at 98.92.
On the domestic equity market front, the Sensex rose 809.57 points to 78,375.73 in opening trade while Nifty climbed 252.75 points to 24,280.80.
Foreign institutional investors sold equities worth Rs 6,345.57 crore on a net basis on Monday, according to exchange data.
