The Indian Rupee rebounded from its all-time low on Tuesday morning, rising by 7 paise to 92.14 against the US Dollar in early trade. This recovery follows a sharp fall in global oil prices, spurred by comments from US President Donald Trump regarding the potential end of the ongoing conflict with Iran. Additionally, a weaker US Dollar and a strong opening in the domestic equity markets further supported the local currency, although Foreign Institutional Investors (FII) outflows limited significant gains.

At the interbank foreign exchange market, the rupee opened at 91.92 but fell to 92.14, marking a 7 paise increase from its previous close. On Monday, the rupee had crashed to a record low of 92.21 against the US Dollar, losing 39 paise due to surging global crude oil prices and a stronger greenback.

Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, explained that the drop in oil prices followed the decision by G-seven countries to utilize their strategic reserves to stabilize the market. Trump’s comments about the war potentially ending soon, coupled with plans to ease sanctions on Russia to reduce oil prices, contributed to a further dip in oil costs.

Brent crude, the global oil benchmark, traded lower by 4.69% at USD 94.32 per barrel as of Asian trading hours. Meanwhile, the US Dollar index, which measures the greenback's strength against a basket of six currencies, was down 0.26% at 98.92.

The domestic equity markets also opened strong, with the Sensex up by 809.57 points to 78,375.73, and the Nifty climbing 252.75 points to 24,280.80. Despite this positive momentum, FII outflows, which totaled Rs 6,345.57 crore on a net basis on Monday, weighed on the market sentiment. Analysts expect the rupee to trade within a range of 91.50 to 92.10, with oil prices and global geopolitical developments continuing to play a crucial role in currency fluctuations.