Rupee recovers 10 paise from all time low to 91.80 against USD in early trade

The rupee rebounded from its alltime low levels and gained 10 paise to trade at 9180 against the US dollar in early deals on Tuesday as the dollar index retreated from its elevated levels Forex traders said the rupee recovered marginally as traders rushed to cover broad dollar weaknessAt the interbank foreign exchange the rupee opened at 9180 against the greenback up 10 paise from its previous closeOn Friday the rupee hit a historic low of 92 per dollar and gained marginally to settle at 9190 against the American currency Forex and equity markets were closed on Monday for Republic DayThe dollar index was down sharply to a fourmonth low of 9680 amid preFOMC positioning as it has weakened 098 per cent over the past month Anil Kumar Bhansali Head of Treasury and Executive Director at Finrex Treasury Advisors LLP said in a research noteAccording to forex traders the rupee remains under severe pressure from heightened global geopolitical uncertainties weak domestic equities persistent dollar demand and unabated capital outflows The pending trade agreement with the US remains a key stabilising factor Until the geopolitical risk eases and the trade deal materialises the rupee is likely to remain vulnerable to external shocks they saidMeanwhile US Treasury Secretary Scott Bessent has said there is a path to remove the 25 per cent tariffs imposed on India for buying Russian oil noting that such purchases by Delhi from Moscow have collapsedUnited States President Donald Trump has imposed 50 per cent tariffs on India including 25 per cent for its purchases of Russian oil leading to a strain in the bilateral ties between the two countries Year ahead forecasts point to continued rupee weakness tied to FPIs selling of equities and debt weakness in Indian stock markets and RBIs oversold position The only factor positive for the rupee is its undervaluation by about 5 per cent Bhansali addedMeanwhile the dollar index which measures the greenbacks strength against a basket of six currencies was trading 002 per cent lower at 9701 Brent crude the global oil benchmark was trading 126 per cent lower at USD 6442 per barrel in futures tradeOn the domestic equity market front Sensex dropped 41768 points to 8112002 in early trade while the Nifty declined 1111 points to 2493755 Foreign institutional investors offloaded equities worth Rs 411338 crore on Friday according to exchange dataIndias foreign exchange reserves jumped by USD 14167 billion to USD 70136 billion during the week ended January 16 the Reserve Bank said on Friday The overall reserves had increased by USD 392 million to USD 687193 billion in the preceding weekThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever