MUMBAI: The rupee recovered slightly from its record low and settled with a gain of 5 paise at 85.88 against the US dollar on Thursday amid firm American currency and elevated level of crude oil prices.
As per forex analysts, relentless selling in domestic equities and outflow of foreign capital kept the local unit under pressure, while dollar strengthened on improved macroeconomic prospects in the US.
They said, uncertainties related to trade restrictions ahead of the change in US administration under President Donald Trump continued to fuel dollar demand, while concerns over Federal Reserve’s move to delay interest cut kept the country’s benchmark treasury yields elevated.
At the interbank foreign exchange, the rupee opened at its historic low level of 85.94 and touched an intra-day peak of 85.84 before ending the session at 85.86 against the greenback, 5 paise higher from its previous close.
On Wednesday, the rupee plunged 17 paise to settle at its all-time low closing level of 85.91 against the dollar.