Indian Rupee extends recovery from record lows

The Indian rupee is seen recovering lost momentum in opening trades on Thursday tracking a mild pullback in dollar overseas and falling international oil prices. However, sluggish local equities amid weak cues from global markets and amid mixed signals on U.S.-India trade talks could cap upside in the counter. INR opened at Rs 88.65 per dollar and recovered further to a high of 88.61 so far during the day. Yesterday, rupee recovered 2 paise from its all-time closing low to settle at 88.71 against the US dollar, as steep tariffs and H-1B visa related issues kept the domestic unit under pressure. The domestic currency is hovering near its all-time low level on sustained foreign fund outflows amid investors' risk-aversion and trade policy uncertainty. Moreover, enhanced US tariffs on Indian goods as well as trade policy uncertainty exacerbated the rupee's depreciation. Indian shares ended lower for a fourth day running on Wednesday, with trade-related concerns, rising oil prices and continued selling by foreign investors keeping investors on edge. The benchmark BSE Sensex fell 386.47 points, or 0.47 percent, to 81,715.63 while the broader NSE Nifty index dropped 112.60 points, or 0.45 percent, to 25,056.90.