Rupee settles flat at 84.07 against U.S. dollar

Forex traders said the rupee is hovering around record low levels as the strong dollar weighed on the local unit.
| Photo Credit: REUTERS

The rupee settled flat at 84.07 (provisional) against the U.S. dollar on Tuesday, as the support from positive domestic markets and a softening crude oil prices was negated by persistent foreign fund outflows.

Forex traders said the rupee is hovering around record low levels as the strong dollar weighed on the local unit, while positive domestic equities, weak crude oil prices and 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), unchanged from its previous close.

On Monday, 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.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% lower at 104.27.

According to traders, the rupee remains under intense pressure, mainly due to persistent foreign fund outflows. However, decline in crude price has helped ease pressure on the rupee despite ongoing market challenges.

Brent crude, the global oil benchmark, rose 0.74% to $71.95 per barrel in futures trade.

On the domestic equity market front, Sensex advanced 363.99 points, or 0.45%, to 80,369.03 points. The Nifty rose 127.70 points, or 0.52%, to 24,466.85 points.

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