The Indian rupee on Thursday clocked its first gain after five sessions, closing 13 paise higher at 71.96 against the US dollar in line with domestic equities.
A day after plunging below the psychological 72-level in over two months, the domestic currency opened on a positive note. As forex market participants weighed a range of macroeconomic factors posing challenges, the Indian currency turned volatile traded in the range of 71.85 to 72.24 to the US dollar.
It finally settled at 72.93 -- showing a gain of 15 paise over its previous close.
Meanwhile, stronger US currency against its key rivals and surging crude oil prices capped the rupee's gains to some extent.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.01 per cent to 98.38.
Global crude oil benchmark Brent Futures surged 1.17 per cent to trade at USD 63.10 per barrel.
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Investors fretted over a host of negative factors like higher retail inflation print, weak IIP data and worries over US-China trade deal.
After weak set of government data indicated deepening of economic slowdown, Moody's Investors Service lowering India's GDP growth forecast further hit investor sentiment.
Moody's has slashed economic growth forecast to 5.6 per cent for 2019, saying government measures do not address the widespread weakness in consumption demand.
"We have revised down our growth forecast for India. We now forecast slower real GDP growth of 5.6 per cent in 2019, from 7.4 per cent in 2018," it said. "India's economic slowdown is lasting longer than previously expected."
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