Hopes of more foreign funds on the back of sharp recovery in domestic equity market also boosted the value rupee against the dollar
'Global investors expect the rupee to be more vulnerable in the downturns in the future than ever before,' notes Apoorva Javadekar.
Overseas, the US dollar took a breather against basket currencies
The rupee has depreciated by about 25 per cent in the past three months, from close to Rs 83 in mid-May, while it was even higher at about Rs 80 against the British Pound in March.
The partially convertible rupee was trading at 65.87/88 per dollar.
The rupee had dropped by 60 paise or 0.89 per cent in previous three trading days.
The rupee had lost 11 paise to close at 66.44 against the dollar.
Gold, the safest haven amid the ongoing uncertainty, also emerged as one of the most lucrative investment options in financial year 2022-23 with an impressive return of 16.1 per cent in rupee terms, and 2.3 per cent returns in dollars. And, had it not been for the very high inflow of smuggled gold and the huge discount prevailing in the market due to high prices, the returns in gold would have been much higher, analysts said. The precious metal has consistently been delivering positive returns in India since 2016.
On a relative worldwide scale of 0-100, the search value index of the rupee stood at 100 in August so far.
The Chinese currency too is expected to continue its fall.
The rupee slipped from its initial gains by 5 paise against the US currency to 67.89 in late morning deals on bouts of dollar demand from importers.
on Monday, the rupee ended lower by 4 paise.
Forex dealers said dollar's weakness against other currencies overseas supported the rupee.
Persistent foreign capital inflows also boosted sentiment.
Weakness in the dollar against some currencies supported the rupee.
The rupee touched a high and low of 65.91 agaisnt the greenback during the day.
Rupee ends day stronger against the dollar.
Rupee down 13 paise to 66.72 against dollar
Strong month-end demand for the US currency mainly from oil importers along with currency futures expiry related purchases predominantly weighed heavily on the forex market and haunted investor sentiment.
We should not see a strong rupee as strength but target a fairly priced rupee for restoring our competitiveness, says Rashesh Shah.
Forex dealers said rebound in domestic stock markets also helped the rupee strengthen against the dollar.
Dollar weakness was a major contributor to the rupee recovery as the skittish investors continued to lighten their long positions.
Domestic equity markets opened with losses which capped the rupee gains.
There's sustained demand for the American currency from importers and banks
Increased month-end demand for the US currency from importers put pressure on the rupee
Earlier, the rupee resumed slightly lower at 61.70 per dollar as against Tuesday's close of 61.69 at the Interbank Foreign Exchange market.
The rupee extended gains for the second straight session against the US currency by firming up 21 paise to close at 64.82 a dollar.
Investors are trying to push ahead with dollar purchases, emboldened by improving market sentiments
To provide exporters/importers greater flexibility in risk management, RBI enhanced the limit available to exporters to 50 per cent
The rupee fell to more than one-month low of 65.75 against the US dollar on Thursday.
The US dollar turned expensive against a basket of global currencies which hit the rupee sentiment
The US currency weakened against major Asian currencies in global markets which lifted the rupee sentiment
The International Monetary Fund (IMF) warned on Tuesday that India's general government debt (comprising both central and state government debt) could exceed 100 per cent of gross domestic product (GDP) in the medium term. It also cautioned that long-term debt sustainability risks are high due to the significant investment required to meet India's climate change mitigation targets. The Indian government, however, disagreed, arguing that risks from sovereign debt are extremely limited as it is predominantly denominated in domestic currency.
The Indian unit opened sharply higher at 64.80 as against Wednesday's closing level of 65.12.
The dollar firmed up against some global currencies.
On Monday, the rupee had lost 14 paise to close at 66.62 against the US dollar.
The rupee has dropped by 21 paise or 0.32 per cent in the last two sessions.
In cross-currency trades, the rupee recovered sharply against the pound sterling to finish at 93.13.
In the global market, the US dollar index, which tracks the greenback against a basket of six major rivals, was up by 0.33 per cent.
The rupee appreciated further on Thursday, adding 106 paise to 66.01 against the dollar, after steps taken by new Reserve Bank of India Governor Raghuram Rajan to attract US currency inflows boosted market sentiment.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances