Rupee Trades Flat Against US Dollar at 84.68 Amid Mixed Market Forces
The Indian rupee traded flat against the US dollar at 84.68 on Wednesday morning, with foreign inflows helping to offset the impact of a strengthening greenback. The rupee’s movement was influenced by a combination of factors, including a stronger dollar globally, rising Brent crude prices, and positive trends in domestic equity markets.
Forex traders pointed to the broader downtrend in the rupee, driven by factors such as Donald Trump’s remarks about a BRICS currency, political instability in the Eurozone, weaker domestic economic indicators, and continued foreign portfolio outflows. The rupee opened at 84.66, gaining 2 paise from Tuesday’s close, but quickly lost the gains and traded flat at 84.68 against the dollar.
On Tuesday, the rupee had recovered from its all-time low, settling with a modest gain of 4 paise at 84.68 against the US dollar. According to Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, the Reserve Bank of India (RBI) played a role in stabilizing the currency, ensuring it remained within the 84.76 level. He forecasted a range of 84.60-84.80 for the rupee, with continued scrutiny on RBI interventions.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was up by 0.13 percent at 106.50, putting pressure on emerging market currencies like the rupee.
In the domestic equity markets, the Sensex rose 190.47 points to 81,036.22, while the Nifty gained 48.1 points to 24,505.25 in early trade. Meanwhile, Brent crude prices increased by 0.55 percent, reaching USD 73.21 per barrel in futures trading.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, purchasing shares worth Rs 3,664.67 crore, according to exchange data, which also provided some support to the rupee.
