Rupee recovers 7 paise from all-time low to close at ₹88.68 against US dollar

The rupee moved in a tight range to settle 7 paise higher at ₹88.68 (provisional) against the American currency on Thursday due to suspected RBI intervention amid a strong US dollar and weak domestic markets.

Forex traders said the H1-B visa fee hike and surge in crude oil prices pressured the rupee. However, the selling of greenbacks by exporters and reports of intervention by the RBI prevented a sharp fall in the domestic unit.

Moreover, investors remained concerned over global trade uncertainties and the impact of the US visa fee hike on India's IT services exports.

At the interbank foreign exchange, the rupee opened at ₹88.65 against the US dollar, and witnessed an intraday high of ₹88.60 and a low of ₹88.70 against the greenback.

The domestic unit finally settled for the day at ₹88.68 (provisional), registering a recovery of 7 paise over its previous close.

On Wednesday, the rupee ended 2 paise down at its lowest-ever closing level of ₹88.75 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07% lower at 97.80. Brent crude, the global oil benchmark, was trading 0.39% lower at USD 69.04 per barrel in futures trade.

On the domestic equity market front, Sensex tumbled 555.95 points to settle at 81,159.68, while the Nifty fell 166.05 points to 24,890.85. Foreign Institutional Investors offloaded equities worth ₹2,425.75 crore on Wednesday, according to exchange data.

Meanwhile, Commerce and Industry Minister Piyush Goyal is in the US for trade talks. He is accompanied by senior officials of the ministry, including special secretary and India's chief negotiator Rajesh Agrawal.

Goyal has held discussions with his US counterpart.

This visit comes in the backdrop of recently concluded day-long discussions in New Delhi between US Chief Negotiator Brendan Lynch and Agrawal on the proposed bilateral trade agreement.