Rupee recovers 75 paise from all-time low to close at ₹88.06 against US dollar

The rupee bounced back sharply by 75 paise to close at ₹88.06 (provisional) against the US dollar on Wednesday, posting its biggest intraday gain in nearly four months, due to likely intervention by the RBI and a surge in the domestic markets.

Forex traders said domestic markets surged nearly 0.70% on optimism over trade talks between India and the US, which reflected in the USD/INR pair.

Moreover, a weak US Dollar and an overnight decline in crude oil prices also supported the rupee.

At the interbank foreign exchange, the rupee opened at ₹88.74 against the greenback, and fell below the 88-mark during the session, touching a high of ₹87.93 per dollar. The domestic unit finally settled at ₹88.06 against the greenback, registering a rise of 75 paise over its previous close.

On Tuesday, the rupee depreciated by 13 paise to close at an all-time low of ₹88.81 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.22% lower at ₹98.82.

Brent crude, the global oil benchmark, was trading 0.19% lower at USD 62.27 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 575.45 points to settle at 82,605.43, while Nifty surged 178.05 points to 25,323.55. Foreign Institutional Investors sold equities worth ₹1,508.53 crore on Tuesday, according to exchange data.

Meanwhile, India's exports grew by 6.74% to USD 36.38 billion in September despite global headwinds. Imports jumped 16.6% to USD 68.53 billion.

The country's trade deficit stood at USD 32.1 billion during the month, according to the commerce ministry data.