The Indian rupee staged a modest recovery on Tuesday, opening 25 paise higher against the US dollar at 83.84. This comes after hitting an all-time low the previous day.
While the domestic equity market’s rebound provided some support, foreign banks’ aggressive dollar buying and global risk aversion put pressure on the rupee.
‘The rupee is under constant selling pressure, reflecting the strong demand for dollars as foreign investors exit the Indian market,’ said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.
Geopolitical tensions in the Middle East, fueled by the Israel-Hamas conflict, and concerns about a potential US recession also impacted investor sentiment and crude oil prices.
Brent crude traded at $77.15 per barrel, with supply concerns outweighing demand worries.
Despite the rupee’s recovery, foreign institutional investors continued their selling spree, offloading shares worth ₹ 10,073.75 crore on Monday.
