Rupee opens on flat note at 84.08 against U.S. dollar

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The rupee opened on a flat note and depreciated 1 paisa to 84.08 against the U.S. dollar in initial deals on Tuesday (October 29, 2024), as persistent foreign fund outflows and the strength of the American currency in the overseas market dented investor sentiments.

Forex traders said a muted trend in domestic equities and strong dollar weighed on the local unit, while easing crude oil prices and any intervention by the Reserve Bank of India (RBI) may also support the local currency at lower levels.

At the interbank foreign exchange, the rupee opened at 84.08 against the greenback. In the initial trade, it touched 84.07.

On Monday (October 28, 2024), the rupee settled 1 paisa higher at 84.07 against the U.S. dollar.

The local currency touched 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 persistent foreign fund outflows.

“The Indian rupee remained in a range of 2 paise on Monday (October 28, 2024) and is expected to remain in the same small range as foreign portfolio investors continue to buy dollars,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02% higher at 104.33.

Brent crude, the global oil benchmark, was marginally up by 0.01% to $71.43 per barrel in futures trade.

“Brent oil lost 6% and was at $71.27 per barrel though U.S. had plans to purchase oil for its strategic reserves, while investors focussed the developments in the Middle East where a temporary lull could be in the offing before hostilities begin again,” Bhansali said.

On the domestic equity market front, Sensex declined 387.61 points, or 0.48%, to 79,617.43 points. The Nifty fell 120.60 points, or 0.5%, to 24,218.55 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday (October 28, 2024), as they offloaded shares worth ₹3,228.08 crore, according to exchange data.