Rupee recovers from record lows, settles 16 paise down at 92.17 against US dollar

Mumbai: The rupee recovered from record low levels and settled with a loss of 16 paise at 92.17 (provisional) against the US dollar on Thursday as global crude oil prices stayed on an upward trajectory amid the raging war in West Asia.

A stronger greenback and volatility in the domestic equity markets further weighed on the rupee, which was already on a weak footing in early trade due to heavy foreign fund outflows, forex traders said.

At the interbank foreign exchange, the local unit opened at 92.25 but kept slipping to touch its record intra-day low against the greenback at 92.36. However, it recovered some of its lost ground and eventually settled at 92.17 (provisional), down 16 paise from its previous close.

The rupee previously recorded its lowest intra-day low of 92.35 against the greenback on March 9.

"The rupee declined, hitting a record low of 92.36 on weak domestic markets and rising crude oil prices. A positive US dollar index and FII outflows, too, weighed on the rupee. However, the rupee recovered on supposed intervention by the RBI," Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.

"We expect the rupee to trade with a negative bias on a surge in crude oil prices and risk aversion in the global markets amid the ongoing geopolitical tensions in the Middle East as it entered the 13th day. Continued FII outflows may further pressure the rupee," he said.

According to Choudhary, the USD-INR spot price is expected to trade in the range of Rs 91.70 to Rs 92.40.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.15 per cent higher at 99.38.

Brent crude, the global oil benchmark, was trading higher by 5.70 per cent at $97.22 per barrel in futures trade.

On the domestic equity market front, the Sensex plunged 829.29 points or 1.08 per cent to settle at 76,034.42, while the Nifty tanked 227.70 points or 0.95 per cent to 23,639.15.

Foreign institutional investors sold equities worth Rs 6,267.31 crore on a net basis on Wednesday, according to exchange data.