Tue Jan 14 11:40:26 UTC 2025: ## Rupee Rebounds After Record Low, but Remains Under Pressure

**Mumbai, January 14, 2025** – The Indian rupee staged a partial recovery on Tuesday, gaining 8 paise to close at 86.62 against the US dollar. This follows Monday’s record low of 86.70, the steepest single-day fall in nearly two years. The rebound was attributed to a slight recovery in domestic equity markets and a weakening US dollar. However, the rupee remains under pressure due to high crude oil prices and continued foreign fund outflows.

The rupee’s value has fallen more than one rupee in the past two weeks. While cooling retail inflation (down to a four-month low of 5.22% in December) and a weaker dollar offered some respite, analysts at Mirae Asset Sharekhan predict continued weakness due to elevated crude oil prices and inflationary pressures. Further cues are expected from upcoming US producer price index (PPI) and consumer price index (CPI) data releases. The rupee is predicted to trade within a range of ₹86.40 to ₹86.85.

Despite the rupee’s struggles, domestic equity markets saw a modest rise. The BSE Sensex climbed 0.22%, while the Nifty gained 0.39%. However, foreign institutional investors offloaded equities worth ₹4,892.84 crore on Monday. Government data revealed that wholesale price inflation rose to 2.37% in December, driven by a surge in manufactured goods, although food prices eased.

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