Rupee recovers from its all-time low and trades at 79.92 in the early going

Early on Friday, the rupee rose versus the US dollar by 7 paise to 79.92 as a solid domestic equity market trend and recent inflows of foreign capital boosted investor confidence.

The advances of the local currency were however limited by a strong dollar in international markets, according to forex brokers.

The rupee began trading at the interbank foreign exchange at 79.95 versus the dollar before strengthening further to reach 79.92 in early trades, gaining 7 paise from the previous close.

The rupee hit an all-time low against the dollar in the previous session, closing at 79.99.

During the morning trade, the local currency fluctuated between 79.95 and 79.88.

In terms of local equities, the broader NSE Nifty increased 82.95 points or 0.52 percent to 16,021.60, while the 30-share Sensex was trading 282.93 points or 0.53 percent higher at 53,699.08.

The dollar index, a measure of the value of the dollar relative to a basket of six other currencies, increased 0.03 percent to 108.57.

Benchmark Brent crude prices increased by 1.19% to $100.28 a barrel.

According to exchange data, foreign institutional investors changed from being net sellers to purchasers on Thursday, purchasing shares worth 309 crore.

The cost of food items continued to rise, although wholesale price-based inflation slowed to a three-month low of 15.18% in June due to a steep decline in mineral prices. The wholesale inflation rate reached double digits in June for the fifteenth month running.

This year’s record high was reached in May when it reached 15.88%. It was 12.07 percent in June 2021.

Due to more expensive imports and weaker merchandise exports, India’s current account deficit is predicted to worsen in the current fiscal year, according to a study released by the finance ministry on Thursday.