Rupee turns flat at 84.07 against U.S. dollar in early trade

The rupee remains flat against the dollar amid oil prices, foreign fund withdrawals, and market

The rupee stayed flat at 84.07 against the U.S. dollar in early trade on Thursday (October 24, 2024) amid elevated crude oil prices and continuous withdrawal of foreign funds from the capital market.

However, the local unit found some cushion as the dollar retreated from its higher level while the domestic equity markets indicated a recovery, forex traders said.

At the interbank foreign exchange, the rupee opened at 84.06 against the greenback and slipped 1 paisa to trade at the previous day's closing level in initial deals.

On Wednesday (October 23, 2024), the rupee had settled with a marginal gain of 1 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.

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.

Amid uncertain geopolitics, weeks ahead of the U.S. presidential election also steered investors towards safe-haven bets, they said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell marginally by 0.07% but remained elevated at 104.20.

Brent crude, the international benchmark, rose 1.27% to $75.91 per barrel in futures trade.

On the domestic equity market front, Sensex rose 68.86 points, or 0.09%, to 80,150.84 points. The Nifty slipped 23.50 points, or 0.10%, to 24,412.00 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.

Published - October 24, 2024 10:00 am IST