Mumbai

In early Tuesday trade, the Indian rupee, after hitting its lowest point, bounced back and gained 29 paise to reach 83.32 against the US dollar. At the start of trading, the domestic currency was at 83.33, gradually improving to touch 83.32 against the dollar, marking a 29 paise increase from the previous close. Last Friday, the rupee had dropped by 48 paise, settling at an all-time low of 83.61 against the US dollar.

On Monday, the foreign exchange and equity markets were closed due to the Holi festival. Analysts believe that the Reserve Bank, with its record forex reserves of USD 642.492 billion as of March 15, can protect the rupee from further depreciation. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, mentioned that while the RBI aims to shield the rupee, its primary goal is to support exporters and reduce import costs to boost indigenous production.

Meanwhile, the dollar index, which measures the dollar’s strength against other currencies, saw a slight decrease to 103.79. Additionally, Brent crude futures, the global oil benchmark, dipped to USD 86.69 per barrel. In the domestic stock market, the BSE Sensex was down by 265.68 points or 0.36%, trading at 72,566.26 points, while the broader NSE Nifty declined by 60.95 points or 0.28%, standing at 22,035.80 points.