Indian rupee recovered in early trade on Thursday after hitting a record low in the previous session. Rupee traded in a range of ₹91.08 (high) and ₹91.57 (low) against the US dollar in the interbank foreign exchange market. During the session, the rupee strengthened by around 50–55 paise to about ₹91.54–₹91.57 per dollar, reversing part of the sharp losses seen a day earlier.
The rebound follows a steep fall in the previous trading session when the rupee slipped to an all-time low of above ₹92 per US dollar. The decline was mainly driven by rising global crude oil prices and geopolitical tensions in the Middle East involving the United States, Israel and Iran.
Market participants said the RBI likely intervened in the currency market by selling US dollars through state-run banks to curb the sharp depreciation. Such intervention helped stabilise the rupee and restore some confidence among traders.
A modest recovery in domestic equity markets and improved sentiment across Asian currencies also provided support to the rupee during the session. However, analysts said the recovery remains fragile due to ongoing global uncertainties.
One of the major concerns for the rupee is the surge in crude oil prices. India imports a large portion of its oil requirements, and higher crude prices increase the country’s import bill and demand for dollars, putting pressure on the local currency.
In addition, foreign fund outflows and global risk aversion have contributed to volatility in the forex market. During periods of geopolitical tension, investors typically shift funds into the US dollar, which is considered a safe-haven asset.