Rupee recovers from lowest level, gains 9 paise to 91.90 against U.S. dollar

According to forex traders, a sharp recovery in the Indian currency was capped by a strong greenback and withdrawal of foreign funds from domestic equity markets.

At the interbank foreign exchange, the rupee opened at 91.89 and strengthened up to 91.87 against the greenback before trading at 91.90 in initial deals, up 9 paisa from its previous closing level.

The rupee ended on a flat note at its lowest level of 91.99 against the dollar on Thursday.

On January 23, the currency hit an all-time intraday low of 92 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.36 per cent higher at 96.48.

Analysts said the dollar index strengthened after the U.S. Federal Reserve kept the interest rate unchanged at the conclusion of its first policy decision of 2026.

Brent crude, the global oil benchmark, was trading 1.50% lower at $69.62 per barrel in futures trade.

On the domestic equity market front, Sensex declined 520.07 points or 0.63% to 82,046.30 in early trade, while Nifty dropped 157.65 points or 0.62% to 25,261.25.

Foreign institutional investors sold equities worth ₹393.97 crore on Thursday (January 29), according to exchange data.

According to the Economic Survey, tabled in parliament on Thursday (January 29), the rupee is “punching below its weight” and “investor reluctance to commit funds to India warrants examination at a time when inflation is under control and the growth outlook is favourable”.