Indian rupee rebounded from its fresh all-time low of 74.46 per US dollar on the back of drop in crude oil price and dollar weakening. At 4:14 pm, the domestic currency was trading with gains of 10 paisa or 0.134% at 74.11 against the greenback. On Wednesday, the rupee closed at 74.22 a dollar.
Today, crude prices declined by 1.1% while in yesterday's trade it fell by as much as 2.25% percent. The dollar index, which measures the US currency's strength against a basket of major currencies, was trading at 95.235, down 0.29% from its previous close of 95.508.
A slew of factors led the rupee's drop to record lows in Thursday's session that include global stock market rout and huge foreign fund outflow.
The 10-year benchmark bond yield stood at 7.993% in comparison to its previous close of 8.031%. Bond yields and bond prices share inverse relationship.
Traders in the currency and money markets have a cautious approach just ahead of the IIP and retail inflation data which is due to be released on Friday.
At the same time, market will look for any government intervention to check rupee's free-fall that might include raising funds from NRIs.
Also, sovereign bonds will keep an eye on the impact of RBI's open market operations worth Rs. 12,000 crore which is due later today.
So far, rupee has lost more than 14% in value this year against the US dollar. Foreign investors have sold $3.69 billion and $7.65 billion in the equity and debt markets, respectively.