Rupee bounces back 49 paise to 89.17 after Friday’s record slide

The rupee bounced back sharply on Monday, November 24, recovering 49 paise to 89.17 against the US dollar in early trade as banks offloaded the greenback and global crude prices softened.

According to forex

traders, a positive open in domestic equities and likely RBI intervention also helped stabilise sentiment after Friday’s (November 21) record lows.

The rupee opened at 89.46 against the US dollar before strengthening to 89.17. On Friday, the rupee had crashed 98 paise, its biggest single-day drop in over three years, to a record closing low of 89.66 amid heavy dollar demand and broad risk-off sentiment across global markets. The previous worst one-day fall was a 99-paise slide recorded on February 24, 2022.

Traders expect the RBI to keep the currency from breaching the psychological 90-mark in the near term. Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors told news agency PTI, “Most traders believe the rupee may not cross 90 as it may remain protected for a few more weeks. The market is now waiting for a positive India–US trade deal outcome by December-end,”

Without progress on that front, “the 90-mark doesn’t seem quite distant,” he added.

Meanwhile, backed by the dollar's strength against six currencies, the dollar index stood steady at 100.18, while Brent crude slipped 0.10% to $62.50 per barrel in futures trade.

Also read: RBI does not target any level for rupee: Governor Malhotra

In equities, the Sensex climbed 218 points to 85,450 in early trade and the Nifty gained 69 points to 26,137. According to data from the exchange, foreign investors sold ₹1,766 crore worth of shares on Friday.

India’s forex reserves rose $5.54 billion to $692.58 billion for the week ended November 14, supported by a surge in the value of gold holdings, RBI data showed.