Delhi: The Indian rupee staged a modest recovery in early trading on Thursday, rising 15 paise from its record low to trade at 91.50 against the US dollar. The rebound came amid improved global sentiment and supportive cues from domestic equity markets.
Currency traders said the recovery was driven largely by a shift in risk appetite after US President Donald Trump indicated that he would not pursue tariff measures against European countries in connection with Greenland-related negotiations. His remarks helped ease concerns of fresh trade tensions, lending relief to emerging market currencies, including the rupee.
Market participants noted that Trump’s comments, made during an event in Davos on Wednesday, reassured investors after earlier reports suggested potential tariffs on several European nations. The move reduced uncertainty in global markets, allowing the dollar to soften slightly against other currencies.
Adding to the rupee’s strength was a positive opening in Indian stock markets, which often supports the local currency by encouraging foreign inflows. Analysts said gains in equities helped counter pressure from earlier losses and provided short-term stability to the rupee.
Despite the recovery, forex experts cautioned that volatility could persist in the near term due to global economic cues and ongoing geopolitical developments. However, Thursday’s early gains reflected a temporary easing of pressure after the currency touched historic lows in the previous session.
