The Rupee on Monday (October 21, 2024) settled flat at 84.07 (provisional) against the U.S. dollar amid strong American currency against major rivals overseas and relentless foreign fund outflows.
“Investors remained cautious and stayed away from riskier assets due to geopolitical uncertainties,” forex dealers said. At the interbank foreign exchange market, the local unit opened at 84.06 against the greenback and stayed almost flat throughout the session. The unit finally settled at 84.07 (provisional) against the dollar, unchanged from its previous session’s closing level.
On Friday, the rupee slipped 1 paisa to close at 84.07 against the U.S. dollar, a tad higher from its all-time low of 84.09 recorded on August 5 this year.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.19% to 103.50.
Brent crude, the international benchmark, surged 1.42% to ₹74.10 per barrel in futures trade. On the domestic equity market front, Sensex declined 73.48 points, or 0.09%, to settle at 81,151.27 points. The Nifty also fell 72.95 points, or 0.29%, to 24,781.10 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth ₹5,485.70 crore, according to exchange data.
Analysts attributed the unabated outflow of FIIs to a further rate cut by the Chinese central bank and a muted sentiment towards domestic corporate earnings.
According to RBI data released on Friday, India’s forex reserves declined by $10.746 billion to $690.43 billion for the week ended October 11. In the preceding week, the reserves had dropped by $3.709 billion to $701.176 billion.
Published – October 21, 2024 05:13 pm IST