Rupee Rebounds, Gains 55 Paise to 91.54 Against US Dollar
Domestic currency recovers after hitting record low; oil price volatility and Iran crisis remain key concerns
New Delhi, Mar 5: The Indian rupee rebounded in early trading on Thursday, gaining 51 paise to trade at 91.54 against the US dollar after slipping to a record low in the previous session amid rising crude oil prices linked to the Iran crisis.
The domestic currency had declined sharply on Wednesday, settling 56 paise lower at an all-time low of 92.05 per dollar. During the day’s trading, it had briefly weakened further to 92.3025, marking its weakest level on record.
Market participants said the rupee’s movement remains heavily influenced by global crude oil trends, particularly as geopolitical tensions in the Middle East continue to drive volatility in energy markets.
Currency traders indicated that sustained fluctuations in oil prices could keep the rupee under pressure in the near term. Bankers also suggested that investors are closely watching for potential intervention by the Reserve Bank of India after the currency lost around 1.3 per cent over the past two sessions.
Meanwhile, oil prices continued their upward trend in Asian markets, with Brent crude climbing nearly 3 per cent to hover just below 84 dollars per barrel. The benchmark remains close to the recent high of 85.12 dollars reached after the escalation of the US-Iran conflict.
Concerns over possible disruptions in the Strait of Hormuz a critical route for global oil shipments have kept crude prices elevated, with Brent recording gains of more than 15 per cent this week.
Domestic equity markets also showed signs of recovery after recent losses. At around 9:17 AM, the Nifty50 was trading at 24,642.30, up 162 points or 0.66 per cent, while the BSE Sensex rose 521 points, or 0.66 per cent, to 79,636.89.
