Rupee Rebounds From All-Time Low, Rises 19 Paise To 77.31 Against US Dollar

The rupee opened at 77.35 against the American dollar at the interbank foreign exchange, then gained more ground to quote at 77.31, clocking a rise of 19 paise from the last close

New Delhi: The rupee on Friday morning trade recovered some lost ground to trade at 77.31 against the US dollar after closing at an all-time low, the PTI reported.

The US dollar also retreated from its elevated levels.

The rupee opened at 77.35 against the American dollar at the interbank foreign exchange, then gained more ground to quote at 77.31, clocking a rise of 19 paise from the last close.

The Indian rupee slumped 25 paise on Thursday to close at its lifetime low of 77.50 against the US currency.

According to the forex traders, the Indian Rupee could witness range-bound trade against the US dollar as broad dollar strength could offset losses. The Reserve Bank of India (RBI) could go for another key rates hike next month due to rising inflation.

The country’s headline inflation zoomed for a seventh-straight month to touch an 8-year high of 7.79 per cent in April on rising food and fuel prices. According to analysts, the RBI most likely to opt for another interest rate hike early next month to tame prices.

The factory output measured in terms of the Index of Industrial Production (IIP) remaining subdued at 1.9 per cent in March, some economists feel that another interest rate hike on the heels of a 40 basis points increase last week may slow economic growth.

Sriram Iyer, senior research analyst at Reliance Securities, said, “A likely more hawkish policy shift from the RBI and expectations of RBI intervention will possibly support the rupee this Friday.”

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.19 per cent lower at 104.65.