In early trade on Thursday, the rupee recovered from its record low and rose by 9 paise to 78.23 against the US dollar.
At the interbank forex, the rupee opened at 78.26 against the US dollar, then to bid for 78.23, registering a rise of 9 paise from the previous close.
On Wednesday, the rupee fell by 19 paise to hit an all-time low of 78.32 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% lower at 104.14.
Sriram Iyer, Senior Research Analyst, Reliance Securities, said, “Considering further fall in crude oil prices, the Indian rupee opened stronger against the dollar this Thursday morning.”
Global oil benchmark Brent crude futures fell 2.17% to $109.32 a barrel.
Meanwhile, according to the minutes of the latest Monetary Policy Committee (MPC) meeting released on Wednesday, all the six members of the MPC, including the RBI governor, expressed concern over the continuing high inflation and stressed that the central bank’s effort would be to bring down the inflation rate. The rate of price increase within the target range.
On the domestic equity market front, the 30-share Sensex was trading 305.1 points or 0.59% higher at 52,127.63, while the broader NSE Nifty was trading 95.00 points or 0.62% higher at 15,508.30.
Foreign institutional investors remained net sellers in the capital markets on Wednesday as they sold shares worth Rs 2,920.61 crore, according to stock exchange data.