21 May,2026 11:52 AM IST | Mumbai | PTI
Rupee trims losses, rebounds in early trade against US dollar. Representational Pic/file
The rupee recovered 41 paise from its all-time closing low to 96.45 against US dollar in early trade on Thursday, after US President Donald Trump indicated that negotiations with Iran were entering the final stages.
Investors are still gauging the geopolitical risk and oil price sensitivity in the background with any flare-up in the Middle East tensions or spikes in crude, forex traders said. At the interbank foreign exchange market, the rupee opened at 96.25 against the US dollar, then touched 96.45 in early trade, up 41 paise from its lifetime low of 96.86 against the US dollar on Wednesday.
On Wednesday, the rupee made a new low of 96.95 and later closed at 96.86 which was also a new closing low as demand for dollars continued with dollar index higher and crude oil prices remaining on the higher side near to USD 110 during the day.
"From a technical perspective, the 97.00 zone is expected to act as an immediate resistance area for USDINR, while support may emerge around the 95.50-95.80 zone," CR Forex Advisors MD Amit Pabari said. Pabari further added that as long as geopolitical tensions remain elevated, the broader pressure on the rupee is likely to continue. RBI measures and liquidity support may help provide temporary relief and contain volatility in the near term, he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.18, up 0.09 per cent.
Brent crude, the global oil benchmark, was trading up 0.71 per cent USD 105.77 per barrel in futures trade. On the domestic equity market front, Sensex climbed 327.74 points to 75,646.13 in early trade, while the Nifty was up 111.75 points to 23,772.05.
Foreign Institutional Investors offloaded equities worth Rs 1,597.35 crore on a net basis on Wednesday, according to exchange data.
As per US media report, US President Donald Trump and Israel's Prime Minister Benjamin Netanyahu had a tense phone call over the future course of the war on Iran as Washington appeared to be in favour of a deal instead of the resumption of strikes.
After the Tuesday phone call with Trump, Netanyahu's "hair was on fire", US media outlet Axios reported on Wednesday, adding that the Israeli Prime Minister was keen on the resumption of strikes to further degrade Iran's military capabilities and weaken the regime by destroying its critical infrastructure. Trump on Sunday said he had put-off strikes on Iran, planned for Tuesday, following a request from Arab nations including Qatar and the UAE.
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