Mumbai, Oct 24 : The rupee remained steady at 84.07 against the US dollar in early trading on Thursday, amid high crude oil prices and ongoing foreign fund withdrawals from the capital market. However, the local currency found some support as the dollar retreated from its recent highs and domestic equity markets showed signs of recovery, according to forex traders.
At the interbank foreign exchange market, the rupee opened at 84.06 against the dollar but slipped by one paisa, trading at the previous day’s closing level. On Wednesday, the rupee had settled with a marginal gain of one paisa at 84.07 against the dollar. The local currency has struggled to regain strength since October 11, when it closed at its lowest level of 84.10 against the dollar.
Analysts noted that a sell-off by foreign investors seeking better returns from the Chinese market has hindered the rupee’s recovery. Additionally, rising US Treasury yields have raised concerns about a slower pace of interest rate cuts by the Federal Reserve. Uncertain geopolitical conditions, especially in the lead-up to the US presidential election, have also driven investors toward safe-haven assets.
Meanwhile, the dollar index, which measures the currency’s strength against a basket of six currencies, fell slightly by 0.07 percent but remained elevated at 104.20. In commodity markets, Brent crude, the international benchmark, rose by 1.27 percent to USD 75.91 per barrel in futures trading.
On the domestic equity front, the Sensex increased by 68.86 points, or 0.09 percent, to reach 80,150.84 points, while the Nifty fell by 23.50 points, or 0.10 percent, to settle at 24,412.00 points. Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, offloading shares worth ₹5,684.63 crore, according to exchange data.
