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The rupee settled on a flat note and rose 1 paisa to 84.07 (provisional) against U.S. dollar on Thursday, weighed down by persistent foreign fund outflows and month-end dollar demand from importers.
Forex traders said suspected intervention by the Reserve Bank of India (RBI) supported the local currency at lower levels.
At the interbank foreign exchange, the rupee opened at 84.08 against the greenback. It traded in a tight range and ended the day at 84.07 (provisional), 1 paisa up from its previous close.
On Wednesday, the rupee depreciated 3 paise to close at 84.08 against U.S. dollar.
The local currency has been hovering around its all-time low level. Rupee touched its lowest closing level of 84.10 against the dollar on October 11.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, month-end demand kept the Indian rupee weak, near to its lowest point. Meanwhile, the RBI was selling dollars to keep it within the range.
As it was a market holiday in most centres lower volumes kept the rupee well offered against the dollar. “The range for Monday is expected at 84.00 to 84.20 as we step into the election week of the U.S.,” Bhansali added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08% lower at 103.91.
Brent crude, the global oil benchmark, rose 0.22% to $72.71 per barrel in futures trade.
On the domestic equity market front, Sensex declined 553.12 points, or 0.69%, to 79,389.06 points. The Nifty fell 135.50 points, or 0.56%, to 24,205.35 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth โน4,613.65 crore, according to exchange data.
On the macroeconomic front, the output of eight key infrastructure sectors expanded by 2% in September, though the growth was slower than the 9.5% registered in the same month last year, according to official data released on Wednesday.
The Centre’s fiscal deficit at the end of the first half of financial year FY25 touched 29.4% of the full-year target, government data showed on Wednesday.
Published – October 31, 2024 04:24 pm IST
