Mumbai, May 21: The Indian rupee strengthened in early trade on Thursday, recovering from its all-time closing low against the US dollar. The currency gained 41 paise, trading at 96.45 per US dollar, supported by improved global sentiment.
The recovery comes after signals of progress in geopolitical negotiations, including indications that discussions involving the United States and Iran are moving toward a critical stage. The development helped ease some pressure on emerging market currencies, including the rupee.
At the interbank foreign exchange market, the rupee opened stronger at 96.25 per dollar before settling around 96.45 in early deals. On the previous trading session, the currency had touched its lifetime low of 96.86 per dollar, reflecting heightened volatility in global currency markets.
Despite the recovery, market participants remain cautious as foreign exchange trends continue to be influenced by geopolitical risks, crude oil price movements, and global interest rate expectations. Traders noted that any escalation in Middle East tensions or a spike in oil prices could once again weigh on the currency.
Overall, the rupee’s early gain reflects short-term relief in global risk sentiment, though volatility is expected to persist in the near term.