New Delhi: Rupee staged a smart recovery on Wednesday by closing at 72.19 against the dollar.
Continuing its downward trend, the Indian rupee hit a new low of Rs 72.91 intra-day. The rupee has been on a down slide owing to inflationary pressure and decline among its global peers against the dollar.
On Wednesday, it opened at a low of 72.78 per dollar, against the previous close 72.69 per dollar.
Rupee rebound also helped market sentiments. The benchmark Sensex surged about 305 points to end at 37,717.96. The broader Nifty too regained the key 11,300-mark.
Meanwhile, a report by SBI Research yesterday said that the continuing plunge in the rupee, coupled with the rising crude prices, will give the states a windfall in tax revenues to the tune of Rs 22,700 crore over and above the budget estimates for the current fiscal.
Moody's Investors Service on Monday said that sustained weakening of the rupee is credit negative for Indian companies which generate revenue in rupees but rely on US dollar debt to fund their operations.
The Indian rupee has depreciated 13 percent so far in 2018 and touched a historic low of Rs 72.67 to a dollar Monday before a rebound on strong intervention of the Reserve Bank.
With PTI Inputs