At the interbank foreign exchange, the rupee opened at 83.95, marginally up by 1 paisa against the U.S. dollar, and traded almost flat in early deals. File
| Photo Credit: Reuters

The rupee rose 1 paisa to 83.95 against the U.S. dollar in early trade on Thursday (October 10, 2024) amid a firm trend in domestic equity markets and a weaker greenback against major overseas rivals.

However, an increase in global oil prices and heavy foreign fund outflows capped further recovery in the domestic currency, according to forex experts.

At the interbank foreign exchange, the rupee opened at 83.95, marginally up by 1 paisa against the U.S. dollar, and traded almost flat in early deals.

The local unit had settled at 83.96 against the greenback on Wednesday (October 9, 2024).

The Reserve Bank of India’s (RBI) decision to keep policy rates unchanged also played a part in the rupee’s range-bound movement.

The RBI on Wednesday (October 9, 2024) kept the policy rate unchanged for the tenth time in a row but shifted its stance from “withdrawal of accommodation” to “neutral”, which may lead to a cut in the forthcoming policies.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.06% to 102.86 points.

Brent crude, the international benchmark, gained 0.80% to $77.19 per barrel in futures trade.

In the domestic equity market, the 30-share Bombay Stock Exchange (BSE) Sensex rose 203.10 points to 81,670.20 in early trade, while Nifty was up 71.55 points to 25,053.50.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday (October 9, 2024), as they offloaded shares worth ₹4,562.71 crore, according to exchange data.

File
| Photo Credit: Reuters

The rupee rose 6 paise to 83.94 against the U.S. dollar in early trade on Tuesday (October 8, 2024) supported by a weaker greenback and lower crude oil price.

However, volatility in the domestic equity markets and FII outflows capped sharp gains in the local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 83.97 against the U.S. dollar and rose to 83.92 before slipping marginally to 83.94, higher by 6 paise from its previous close.

The domestic unit had settled at 84.00 on Monday.

The reconstituted rate-setting panel of the Reserve Bank of India (RBI) on Monday started deliberations on the next bi-monthly monetary policy.

The decision of the panel will be announced on Wednesday, which could determine the movement in the rupee over the next few days.

In the current context, experts feel that the RBI may not follow the U.S. Federal Reserve, which lowered the benchmark rates by 50 basis points, and the central banks of some developed nations, which have reduced the interest rates.

On the domestic equity market front, the Sensex was trading flat at 81,044 points. The Nifty, too, remained stable at 24,787.40. Both indices suffered losses in the previous six trading sessions.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.13 per cent to 102.39.

Brent crude, the international benchmark, declined 1.62% to $79.62 in futures trade.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, offloading shares worth ₹8,293.41 crore on a net basis in the cash segment, according to exchange data.