Rupee rebounds from record low as oil prices, dollar fall

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Mumbai: The Indian rupee on Thursday rebounded from its fresh all-time low after crude oil prices and the US dollar fell. At 2.11pm, the rupee was trading at 74.16 a dollar, up 0.08% from its Wednesday’s close of 74.22. In the morning trade, the rupee opened at 74.31 and touched a fresh low of 74.46 a dollar, tracking sell-off in the global markets. The 10-year gilt yield stood at 8.01% from its previous close of 8.031%. Bond yields and prices move in opposite directions.

Traders are cautious ahead of retail inflation and Index of Industrial Production data due on Friday. According to Bloomberg analyst poll, CPI will be at 4% for September month from 3.69% a month ago. IIP will be at 3.9% for August versus 6.6% last month.

The benchmark Sensex fell 1.87% or 650.51 points to 34,110.38 points. Year to date, it has fell 0.3%.

So far this year, the rupee has declined 14.3%, while foreign investors have sold $3.69 billion and $7.65 billion in the equity and debt markets, respectively.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.235, down 0.29% from its previous close of 95.508. Crude oil fell 1.1%. On Wednesday it declined 2.3%.