Mumbai: The rupee recovered from steep losses and settled with a gain of 10 paise at 87.21 against the US dollar on Tuesday as the American currency index fell to its four-month low level and crude oil prices also stayed subdued.
A volatile trend in domestic equity markets and outflow of foreign capital amid fear of recession in the US and trade-related uncertainties restricted the recovery in the local currency, forex traders said.
At the interbank foreign exchange, the rupee opened at 87.37 and touched the day’s low of 87.39 against the greenback.
The unit also strengthened up to 87.17 before ending the session at 87.21 against the dollar, 10 paise higher compared to its previous closing level.
On Monday, the rupee crashed 36 paise to close at 87.31 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.58 per cent at 103.35, close to the level seen on November 5.
Brent crude, the global oil benchmark, traded 0.71 per cent higher at US 69.77 per barrel in futures trade, struggling to reclaim the crucial $70-a-barrel mark. FIIs offloaded equities worth Rs 485.41 crore on a net basis on Monday, according to exchange
data.