The Indian rupee could see some recovery on Thursday morning tracking weakness in dollar overseas coupled with easing international crude oil prices. However, local equities likely to drift lower amid Fed caution and lingering tariff concerns could add pressure on the local unit. On Tuesday, rupee depreciated 10 paise to close at 86.98 against US dollar. Yesterday, forex markets were closed on account of Shivaji Jayanti. Meanwhile RBI noted in its monthly bulletin yesterday that the Indian rupee has depreciated in line with other emerging economies, weighed down by the strength of US dollar. Strong macroeconomic fundamentals, along with improvements in various measures of external sector vulnerability, have helped India tide over the ongoing wave of global uncertainty. INR depreciated by 1.5 per cent (m-o-m) in January, in line with movements in most major currencies. However, in an environment of heightened global market turbulence, the INR exhibited relatively low volatility, the central bank report noted.

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