Indian rupee rebounds to 95.83 vs US dollar as crude prices ease

The rupee closed stronger Wednesday at 95.83 a dollar, recovering from the near 96 level seen in the morning trade, tracking reduction in crude prices.

The currency gained 0.16% Wednesday from the previous close of 95.98 against the US greenback.

The rupee opened the day 95.95 a dollar and strengthened to 95.93 immediately. However, the market saw higher dollar demand in late morning trades pushing the rupee down to 95.9850. Foreign institutional investment outflows also weighed on the currency but likely central bank intervention helped it recover smartly.


Large public sector banks were seen selling dollars in bouts, possibly on the behest of the Reserve Bank of India to lend support to the local currency, traders said.

"The rupee appreciated, tracking broader gains across Asian currencies, helped by lower crude prices and a retreat in global bond yields," said Dilip Parmar, a research analyst with HDFC Securities in a note.

The Indian currency however remained one of the worst performers in Asia in the second quarter of the fiscal, falling 1.2% as it faced multiple headwinds in the form of higher crude oil prices, rising US yield and persistent outflows of foreign capital.

Crude price however eased to below $103 a barrel Wednesday from near $108 seen earlier in the week.