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Rupee falls 4 paise to close at 84.09 against U.S. dollar

At the interbank foreign exchange, the rupee opened at 84.06 against the greenback. It traded in a tight range and ended the day at 84.09 (provisional), down 4 paise from its previous close

by · The Hindu

Rupee depreciated 4 paise to close at 84.09 (provisional) against U.S. dollar on Wednesday (October 30, 2024), weighed down by weak domestic markets 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 84.06 against the greenback. It traded in a tight range and ended the day at 84.09 (provisional), down 4 paise from its previous close.

On Tuesday, the rupee gained 2 paise to settle at 84.05 against the 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.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.15% lower at 104.16. Forex traders said the dollar declined on disappointing jobs data from the U.S.

Brent crude, the global oil benchmark, rose 0.53% to $71.50 per barrel in futures trade.

"We expect the rupee to trade with a mixed to negative bias on weak domestic markets and sustained FII outflows. Month-end dollar demand from importers may further weigh on the rupee.

"However, softening of U.S. dollar amid disappointing jobs markets may support the rupee at lower levels. Traders may watch out for Q3 2024 GDP data and non-farm payrolls report from the U.S. this week," said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

On the domestic equity market front, Sensex declined 426.85 points, or 0.53%, to 79,942.18 points. The Nifty fell 126.00 points, or 0.51%, to 24,340.85 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth ₹548.69 crore, according to exchange data.

Published - October 30, 2024 04:26 pm IST