Mumbai, Mar 5 (PTI) Rupee recovered from its lowest level and gained 48 paise to trade at 91.57 against the US dollar in early trade on Thursday, tracking positive momentum in domestic equity markets.
However, higher crude oil prices, a strengthening American currency and intense selling of Indian equities by foreign investors amid escalating tension in the Middle East kept the local unit under pressure, forex analysts said.
At the interbank foreign exchange market, the rupee opened at 92.16 and touched a high of 91.30 before trading at 91.57 against the American currency, registering a gain of 48 paise from its previous closing level.
The Indian currency slumped 56 paise to close at its all-time low of 92.05 against US dollar on Wednesday, after logging a steep loss of 41 paise on Monday. The forex market was closed on Tuesday on account of Holi.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20 per cent higher at 98.93.
Brent crude, the global oil benchmark, was up 2.78 per cent at 83.66 per barrel in futures trade, after escalating threats of disruptions in the flow of crude through the Strait of Hormuz.
The military conflict involving the US, Israel and Iran continued on Thursday as Iranian missiles hit Israel after an American submarine sank an Iranian warship on Wednesday.
Iran has threatened the destruction of military and economic infrastructure across the region.
Experts say that India faces the risk of a sharp increase in its import bill with the rising crude prices in the international market, as the country’s 85 per cent fuel requirement is met through imports.
On the domestic equity market front, the Sensex gained 212.26 points or 0.27 per cent to 79,328.45, while Nifty climbed 86.70 points or 0.35 per cent to 24,567.20 in early trade.
Foreign institutional investors sold equities worth Rs 8,752.65 crore on a net basis on Wednesday, according to exchange data.
