Mumbai, March 10 The rupee rebounded from its all-time low in early trading on Tuesday, rising by 7 paise to 92.14 as global oil prices fell after US President Donald Trump said the war with Iran may end soon.
A weaker dollar and a strong opening in the domestic equity markets further supported the local currency, while heavy outflows by foreign investors capped sharp gains, forex traders said.
At the interbank foreign exchange market, the rupee opened at 91.92 but fell to 92.14, up 7 paise from its previous close.
The rupee crashed to its all-time low of 92.21 against the US dollar on Monday, losing 39 paise during the session, as global crude oil prices saw a sharp spike, and the dollar strengthened.
"The rupee fell to its lowest level on Monday. However, oil prices have since fallen after the G-7 countries decided to use their strategic reserves to sell oil and bring prices down," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
"Later, Trump said the war could be over as soon as his goals have been achieved. He also mentioned easing sanctions on Russia and other measures to cool down oil prices. Brent prices cooled off this morning in the Asian trade," he added, noting that the rupee is expected to trade within a range of 91.50 to 92.10.
Meanwhile, Brent crude, the global oil benchmark, was trading lower by 4.69 per cent at USD 94.32 per barrel in futures trade as the war between the US, Israel, and Iran intensified.
The dollar index, which gauges the strength of the dollar against a basket of six currencies, was trading 0.26 per cent lower at 98.92.
On the domestic equity market front, the Sensex rose by 809.57 points to 78,375.73, while Nifty climbed by 252.75 points to 24,280.80.
Foreign institutional investors sold equities worth Rs 6,345.57 crore on a net basis on Monday, according to exchange data.