In early trading, the Indian rupee climbs 9 paise to 79.24 against the US dollar

The rupee increased 9 paise to 79.24 against the US dollar in early trade on Wednesday, rebounding from its record low level. The Indian rupee's opening rate on the interbank foreign exchange was 79.29 to the US dollar. The local currency's value versus the US dollar ranged from 79.24 to 79.31 in the opening trading.

The rupee had previously reached an all-time low against the US dollar in the previous session, closing at 79.33. The rupee began higher on Wednesday, tracking a drop in crude oil prices over the previous night, according to Sriram Iyer, Senior Research Analyst at Reliance Securities.

Thoughts of an economic slowdown and a deteriorating CAD could cause the rupee to drop to fresh lows against the dollar, limiting appreciation bias (Current Account Deficit). According to Iyer, "many traders and investors are actually projecting a CAD upwards of 3% of GDP in the current financial year, up from 1.2% last year."

Iyer pointed out that the Reserve Bank of India's (RBI) hawkish or aggressive approach at their upcoming meeting in August might be the only thing that could stop the rupee from falling. The 30-share Sensex was up 362.8 points, or 0.68 percent, at 53,497.15 points on the domestic equity front, while the larger NSE Nifty was up 90 points, or 0.57 percent, at 15,900.85 points.

The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased 0.08 percent to 106.45. Brent crude futures, the global standard for crude oil, increased 1.14 percent to USD 103.94 per barrel.

Following a lengthy lull in the capital market, foreign institutional investors on Tuesday became net buyers, purchasing shares worth Rs 1,295.84 crore, according to exchange data.