The rupee recovered 16 paise from its record low to trade at 95.52 against the US dollar in early trade on Wednesday, supported by expectations of reduced dollar demand following higher import duties on precious metals.
Forex market participants said the dollar-rupee pair could witness some stability as demand from gold importers is likely to moderate.
The Indian government recently increased import duties on gold and silver to 15 per cent from 6 per cent in an effort to curb overseas purchases and reduce pressure on the country’s foreign exchange reserves.