Rupee settles flat at 84.07 against U.S. dollar for second straight session

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| Photo Credit: Reuters

The rupee settled flat at 84.07 (provisional) against the US dollar for the second straight session on Tuesday (October 22, 2024), tracking negative domestic equity markets and unabated outflow of foreign funds.

The local unit was also weighed down by elevated crude oil prices as well as firm American currency amid rising U.S. treasury yields, forex traders said.

At the interbank foreign exchange market, the domestic unit opened at 84.07 against the greenback and witnessed a restricted movement between 84.06 and 84.08 during the session. The unit finally settled at the previous day’s closing level of 84.07 (provisional) against the dollar.

On Monday, the rupee settled flat at 84.07 against the US dollar.

The Indian currency has been struggling to recover since October 11 when it closed at its lowest level of 84.10 against the dollar.

According to analysts, the rupee has been under pressure due to the continuous selling of Indian equities by FIIs in pursuit of better gains from the Chinese market.

Also, they said, a surge in the US treasury yields raised concerns about slower rate cuts by the Federal Reserve, steering investors towards a safer bet dollar.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee traded on a flat note amid weak domestic markets and a surge in US treasury yields. However, reports of RBI interventions supported the rupee at lower levels.

“Investors may take cues from PMI data from the US this week. 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 marginally by 0.07 per cent to 103.76.