Rupee Recovers from All-Time Low: Dollar Weakness, Oil Prices Offer Relief

• The rupee gained 10 paise to 91.80 against the US dollar, recovering from Friday's historic low of 92 per dollar.
• The immediate trigger for the recovery was a weaker US dollar, with the dollar index slipping towards a four-month low.
• Forex traders noted the recovery was mainly due to short-covering, not a fundamental shift, as structural pressures persist.
• Ongoing challenges include geopolitical risks, dollar demand, weak equity markets, and sustained foreign capital outflows.
• Lower crude oil prices and a sharp rise in India's foreign exchange reserves to over USD 701 billion provided some cushion.

Why It Matters: Rupee recovers marginally due to weaker dollar and short-covering, but faces persistent structural headwinds.