Image used for representational purposes. File
The rupee opened flat on Tuesday (Oct 29, 2024) and fell 1 paisa to 84.08 against the US dollar in initial deals on Tuesday (Oct 29, 2024) as continued foreign fund outflows and strength in US currency in the overseas market negatively affected investor sentiment.
Forex traders said a subdued trend in domestic equities and a strong dollar weighed on the local unit, while easing in crude oil prices and any intervention from the Reserve Bank of India (RBI) could also leave the local currency at lower levels to support.
At the interbank forex market, the rupee opened at 84.08 against the dollar. In the first transaction it was 84.07.
On Monday (October 28, 2024), the rupee was trading 1 paisa higher at 84.07 against the US dollar.
The local currency reached its lowest closing level of 84.10 against the dollar on October 11.
According to traders, the rupee remains under intense pressure mainly due to continued foreign fund outflows.
“The Indian rupee remained within a range of 2 paise on Monday (Oct 28, 2024) and is expected to remain in the same narrow range as foreign portfolio investors continue to buy dollars,” said Anil Kumar Bhansali, Chief Financial Officer and Executive Director. Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, traded 0.02% higher at 104.33.
Brent crude, the global oil benchmark, rose marginally 0.01% to $71.43 per barrel in futures trading.
“Brent crude lost 6% to $71.27 per barrel, even though the US had plans to buy oil for its strategic reserves, while investors focused on developments in the Middle East, where a temporary lull lies ahead could be down before hostilities restart,” Bhansali said. .
In the domestic equity market, Sensex fell 387.61 points, or 0.48%, to 79,617.43 points. The Nifty fell 120.60 points, or 0.5%, to 24,218.55.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday (Oct 28, 2024) as they sold shares worth ₹ 3,228.08 crore, according to exchange data.
Published – Oct 29, 2024 11:25 AM IST
