Rupee stays unchanged at 84.07 against U.S. dollar

On October 23, 2024, the Rupee had settled with a marginal gain of one paisa at 84.07 against the U.S. dollar. File
| Photo Credit: The Hindu

The Rupee stayed stuck at its near-record low of 84.07 (provisional) against the U.S. dollar on Thursday (October 24, 2024) as surging crude oil prices and persistent foreign fund outflow weighed on the local unit.

Analysts said the selling rush by foreign investors in pursuit of better gains from the Chinese market has been preventing the Rupee’s recovery, while higher U.S. treasury yields have triggered the fear of slower interest rate cut by the Federal Reserve. “Also, uncertain geopolitical scenario ahead of the U.S. Presidential election steered investors towards safe-haven bets,” they added.

At the interbank foreign exchange market, the domestic unit opened at 84.06 against the greenback and remained almost standstill throughout the session. The unit finally settled at the previous session’s closing level of 84.07 (provisional) against the dollar. On Wednesday (October 23, 2024), the Rupee had settled with a marginal gain of one paisa at 84.07 against the U.S. dollar.

The local currency has been struggling to recover since October 11, when it closed at its lowest level of 84.10 against the dollar. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the Rupee traded on a flat note amid weak domestic markets and overnight gains in crude oil prices.

“The Rupee is expected to trade with a negative bias on overall strength in the U.S. dollar and FII outflows,” he added. “Traders may take cues from weekly unemployment claims, PMI and new home sales data from the U.S. USD-INR spot price is expected to trade in a range of ₹83.90 to ₹84.30,” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell slightly by 0.21% but remained elevated at 104.05. Brent crude, the international benchmark, surged 2.03% to $76.43 per barrel in futures trade.

On the domestic equity market front, Sensex fell 16.82 points or 0.02% to settle at 80,065.16 points. The Nifty also dipped 36.10 points or 0.15% to 24,399.40 points. Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday (October 23, 2024), as they offloaded shares worth ₹5,684.63 crore, according to exchange data.