Rupee Rebounds from Intraday Low, Settles Near Flat Against Dollar

The Indian rupee slipped below the 96 level during intraday trade on Thursday but eventually settled at 95.94 against the U.S. dollar, a mere 3 paise lower than its previous closing level.

This recovery was attributed to likely RBI intervention, which helped pare initial losses. The local currency had been under pressure due to outflows of foreign funds and global trade uncertainties following the U.S. House of Representatives' approval of a law authorizing President Donald Trump to impose up to a 100% tariff on India and other countries importing Russian oil.

Additionally, the rupee was weighed down by the U.S. Federal Reserve's interest rate hike for the first time in three years amid rising inflation. Despite this, the domestic unit managed to touch an intraday high of 95.78 before settling at 95.94 against the greenback.