Modest recovery in INR; Positive cues from equities support

The Indian rupee is seen extending recovery on Tuesday morning in Asia as dollar softens near 100 mark on dovish comments from Fed officials that boost expectations of a Federal rate cut. Moreover, positive opening in local equities tracking global cues are also supporting the local unit. INR opened at Rs 89.02 per dollar before edging lower to a low of 89.16 so far during the day. Yesterday, rupee rebounded well by almost 50 paise to settle at around 89.15 against the greenback following a sharp plunge to hit a lifetime low level on Friday. The rupee had plunged 98 paise to close at its lifetime low of 89.66 against the US dollar on Friday, due to a huge demand for the greenback in the domestic forex market amid widespread selling pressure in local and global equities and trade-related uncertainties. Meanwhile, Indian shares also ended lower on Monday despite positive cues from global markets. The benchmark BSE Sensex ended the session down 331.21 points, or 0.39 percent, at 84,900.71 due to selling by foreign institutional investors amid a weakening rupee.

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