Rupee Recovers A Touch Against A Softer Dollar, But Not Far From Record Low

The rupee gained some ground on Tuesday against a softer dollar, which ran out of steam.

Rupee Recovers A Touch Against A Softer Dollar, But Not Far From Record Low

Rupee Today: Rupee recovers from record low but not very far form that level

The rupee gained some ground on Tuesday against a softer dollar, which ran out of steam, but the domestic currency was not very far from its record low hit in the previous session.

PTI reported that the domestic currency gained 9 paise to provisionally close at 81.58 against the US dollar. 

Bloomberg showed the rupee was last changing hands at 81.5475 against the greenback, after opening strongly at 81.4875, compared to its record low of 81.6612 hit on Monday. The currency had closed at 81.6237 in the previous session, according to the news agency.

After four straight sessions of losses, during which the rupee shed 193 paise against the US dollar, this is the currency's first rebound.

"The rupee consolidated in a narrow range after falling to fresh lows in Monday's session. There are some reports suggesting that India's inclusion into the key government bond index could get pushed back to next year," Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services, told PTI.

The dollar index eased 0.13 per cent to 113.72, after touching 114.58 on Monday, its strongest since May 2002.

The British pound rose 4.6 per cent to $1.0801 on Tuesday, recovering from a record low of $1.0327 on Monday on massive energy subsidies in addition to the government's recently announced tax cut measures.

Following the collapse of the pound, the Bank of England declared that it would not hold off on changing interest rates and that it was "very closely" watching the markets.

The euro, after hitting a 20-year low in the previous session, was up 0.24 per cent on the day at $0.9629.

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