The rupee bounced back from its record low and appreciated by 8 paise to 84.38 against the US dollar in early Monday trading, despite a strong dollar and ongoing foreign fund outflows.

According to forex traders, the recovery of the local currency was supported by lower crude oil prices in the international market.

At the interbank foreign exchange market, the rupee opened at 84.42 before strengthening to 84.38 against the US dollar, marking an 8-paise gain from its previous close.

Last Thursday, the rupee slipped by 7 paise, reaching an all-time low of 84.46 against the US dollar. Forex markets were closed on Friday in observance of Guru Nanak Jayanti.

Meanwhile, the dollar index, which measures the greenback’s performance against a basket of six major currencies, was up 0.06% at 106.68.

In the futures market, Brent crude, the global oil benchmark, rose 0.51% to $71.40 per barrel.

Analysts noted that inflationary pressures in India are further straining the currency. Additionally, a record surge in U.S. Treasury yields has bolstered the dollar index.

Aslo read | Garware Technical hits record high post Q2; board approves bonus issue

According to government data released on Thursday, wholesale price inflation in India climbed to a four-month high of 2.36% in October, driven by rising costs of food items, particularly vegetables, and manufactured goods. Retail inflation also exceeded the Reserve Bank of India’s upper tolerance limit, reaching a 14-month high of 6.21% in October, largely due to rising food prices.

On the domestic stock market, the Sensex was down by 125.08 points, or 0.16%, trading at 77,455.23 points, while the Nifty dropped by 20.15 points, or 0.09%, to 23,512.55 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, offloading shares worth ₹1,849.87 crore, according to exchange data.

The latest government figures indicated that India’s merchandise exports surged by 17.25% year-on-year in October, the highest in over two years, reaching $39.2 billion, while the trade deficit widened to $27.14 billion.

Additionally, the Reserve Bank of India reported on Friday that the country’s forex reserves declined by $6.477 billion, totaling $675.653 billion for the week ending November 8.

For more such latest updates, click here.