Fri Dec 13 11:05:43 UTC 2024: ## Rupee Rebounds After Hitting All-Time Low

**Mumbai, December 13, 2024** – The Indian rupee staged a significant recovery on Friday, gaining 10 paise to close at 84.78 against the US dollar. This follows a record low of 84.88 on Thursday. The rebound was attributed to a surge in domestic equity markets and easing inflation, which fell to 5.48% in November, according to official data released Thursday. This decline in inflation, largely due to lower food prices, puts India within the Reserve Bank’s comfort zone and may pave the way for a potential rate cut in February.

However, the recovery was partially offset by a strengthening US dollar and continued foreign fund outflows. The positive performance of the domestic market, with the Sensex closing up 1.04% and the Nifty gaining 0.89%, played a key role in the rupee’s rebound. Despite the gains, analysts remain cautious, citing the strengthening US dollar and elevated crude oil prices as potential headwinds. Foreign Institutional Investors (FIIs) sold shares worth ₹3,560.01 crore on Thursday. Anuj Choudhary of Mirae Asset Sharekhan anticipates the rupee will trade within a range of ₹84.65 to ₹85.05. The improved economic indicators, particularly the easing inflation and positive domestic equity market, helped bolster the currency. The industrial production growth, however, slowed to 3.5% year-on-year in October.

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