Rupee jumps 88 paise against US dollar: Factors supporting the rebound

The Indian rupee strengthened on Wednesday (October 15), recovering 88 paise from its previous record low to trade at 87.93 against the US dollar. Easing dollar strength and reports of Reserve Bank of India (RBI) intervention supported the domestic currency.The rupee opened at 88.74 in the interbank market, gained momentum, and briefly touched 87.93 before trading at 88.33 later.

On Tuesday (October 14), it had slipped 13 paise to close at an all-time low of 88.81.

Forex traders pointed to multiple factors behind the rebound. Brent crude fell 0.43% to $62.12 per barrel. The dollar index, which tracks the greenback against six major currencies, dropped 0.20% to 98.85.“Markets responded to easing US-China trade tensions and the prolonged US government shutdown, which weighed on the dollar in the short term,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.

He added that Federal Reserve Chair Jerome Powell signaled possible rate cuts this year amid rising unemployment and persistent inflation.

On the domestic front, the Sensex rose 354.57 points to 82,384.55, while the Nifty gained 109.55 points to 25,255.05. Foreign Institutional Investors sold equities worth ₹1,508.53 crore on Tuesday (October 14).

–With PTI inputs