INR recovery capped by firm dollar overseas, muted equities

The Indian rupee recovered from the record low level and settled with a gain of 11 paise at 88.66 (provisional) against the US dollar on Tuesday boosted by falling crude oil prices overseas. However, a firm dollar, outflow of foreign funds and subdued domestic equity markets prevented a sharp gain in the Indian currency. Indian shares ended Tuesday's session lower after three top Federal Reserve officials pushed back against expectations of another interest rate cut in December. The benchmark BSE Sensex fell 519.34 points, or 0.62 percent, to 83,459.15 in cautious trade while the broader NSE Nifty index settled 165.70 points, or 0.64 percent, lower at 25,597.65. At the interbank foreign exchange, the rupee opened at 88.55 and hit the intra-day high of 88.28 against the greenback. The unit also touched a low of 88.67 before ending the session at 88.66 (provisional) against the dollar, up 11 paise from its previous closing level.

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