Mumbai, Nov 24 (IANS) The Indian rupee opened stronger on Monday, rising by 26 paise against the US dollar, as currency experts said the improvement may be due to support from the Reserve Bank of India (RBI).
The rupee opened at 89.1450 against the US dollar, compared to the previous close of 89.4088.
Experts said that 88.80 has now become a strong support level from a technical perspective.
They added that if the rupee closes below this level on a daily basis, it could signal further strength for the currency.
On November 21, the rupee had slipped to a record low of 89.49 against the dollar. The fall was driven by foreign investor outflows from Indian equities, uncertainty around a possible US-India trade deal, and a lack of visible intervention from the RBI at that time.
In recent weeks, the central bank has been active in the currency market to reduce sharp volatility and prevent large swings in the rupee’s value.
“Rupee dropped sharply to a new all-time low of 89.60, falling by 0.90 paise or -1.02 per cent, as the absence of any clear communication or progress on the India–US trade deal triggered strong selling pressure,” analysts said.
“With no visibility on tariff rollback or trade-related assurances, sentiment remained weak, leading to a broad risk-off move in the rupee,” they added.
Near-term weakness can extend further, with the rupee likely to trade in the 89.20–90.00 range, as per market watchers.
Meanwhile, Indian stock markets opened on a positive note on Monday, supported by buying in global markets.
Both the benchmark indices gained up to 0.1 per cent in early trade. The Sensex was trading at 85,354, up 122 points, while the Nifty stood at 26,109, higher by 41 points.
–IANS
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