MUMBAI: The rupee, which has been embattled for long and remains the worst performer in Asian having lost more than 2% so far this year on the back of a 4.9% fall last year, has recovered from its lowest closing level of 92.15 and rallied nearly 0.5% against the dollar in early trade Thursday, tracking positive momentum in the equities markets and stable bond prices.
The beleaguered rupee, weighed down by the rising crude prices following the attack on Iran over the weekend and the resultant bloodbath in the market and the continuing rip off that foreign investors are engaging in the equities market--- after taking out close to $19 billion in 2025 alone, they have pulled out another $4 billion from the market so far this year—had slumped 72 paise to close at its all-time low of 92.15 against the dollar Wednesday, after logging in a loss of 41 paise Monday.
At the interbank forex market, the rupee opened at 92.16 from the previous close of 92.15 but soon recouped the lost ground and rose to 91.30 before falling to 91.57 against the dollar, according to a PTI report.
Traders said the pain is far from over for the rupee as crude continues to go up—crossed $83.80 a barrel today, a strengthening dollar and intense selling of equities by foreign investors amid escalating tension in the Middle East are keeping the unit under pressure and expect the currency breach the 93 level sooner than later.
Oil is rallying because embattled Iran has closed the Strait of Hormuz that carries over a fifth of global crude and natural gas. LNG price soared over 55% in Europe after Qatar, which is the largest producer of LNG in the world hit by Iranian missiles, shut production and halted shipments through Hormuz. Iran has threatened to destroy military and economic infrastructure across the region.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.20% higher at 98.93.
Industry experts warn that the country, which imports 85% of its oil needs and 45% of that from the Gulf, faces the risk of a sharp increase in its import bill with rising crude prices.
On the equity market front, the Sensex gained was trading 355 points up, while Nifty climbed over 125 points at 1145 hrs.