Rupee opens 26 paise higher at 89.15/USD on likely RBI support

Indian rupee

The Indian rupee strengthened by 26 paise at the opening today, a move currency experts attributed to probable support from the Reserve Bank of India.

The local currency opened at 89.1450 against the US dollar, as compared to 89.4088 against the greenback at previous close.

"From a technical standpoint, 88.80 has now evolved into a strong support level. A sustained daily close below this mark would signal a shift back toward rupee strength," said Amit Pabari, managing director at CR Forex Advisors.

On November 21, the local currency depreciated to a record low of 89.49 against the US dollar due to outflows from foreign investors from Indian equities, uncertainty over a US-India trade deal, and absence of RBI's support sparked the slide in the rupee.

"Global risk-off sentiment has spilled into currency markets after a sharp overnight sell-off in cryptocurrencies and AI-linked technology stocks. The sudden unwinding of risk trades is weighing on emerging-market currencies, including the Indian Rupee," said Anindya Banerjee, Head of Research – Currency, Commodity and Interest Rate Derivatives, at Kotak Securities.

The central bank has been supporting the local currency in last few weeks to curb excessive volatility.