India, Jan 22 : The Indian rupee bounced back from its all time low, gaining 15 paise to trade at 91.50 against the US dollar in early deals on Thursday, driven by improved risk sentiment after US President Donald Trump ruled out imposing tariffs on Europe over Greenland.
Forex traders said investor confidence was boosted following Trump’s statement at the World Economic Forum in Davos, where he announced scrapping planned tariffs on eight European nations and highlighted progress on a Greenland framework. Positive momentum in domestic equities further supported the rebound of the domestic currency.
At the interbank foreign exchange, the rupee opened at 91.54 and strengthened to 91.50, recovering from Wednesday’s record low close of 91.65.
However, analysts cautioned that the rupee remains vulnerable to global geopolitical uncertainties. The pending US-India trade agreement is also seen as a key factor in stabilising the currency, and until risks ease, the rupee could face external pressure.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, noted that gains in Asian equities provided some relief, while Trump’s avoidance of confrontation with Europe on Greenland positively influenced market sentiment.
Meanwhile, the dollar index, measuring the greenback against a basket of six currencies, inched up 0.02 per cent to 98.78. Brent crude futures traded 0.17 per cent higher at USD 65.35 per barrel.
On the domestic front, equity markets mirrored the positive sentiment, with Sensex rising 533.37 points to 82,443 and Nifty gaining 157.20 points to 25,314.70 in early trade. Foreign institutional investors sold equities worth Rs 1,787.66 crore on Wednesday, according to exchange data.