Mumbai: The Indian rupee remained stable, rising by just 1 paisa to 84.07 against the US dollar in early trading on Wednesday dragged down by strong American currency, impact by the continuous foreign fund outflows. Forex traders pointed out that the Indian currency was unable to recover due to a drop in domestic equity markets and high crude oil prices.
Reportedly, the Indian rupee started at 84.07 against the US dollar, up by 1 paisa, at the interbank foreign exchange and remained stable in early transactions. The rupee closed at 84.08 against the US dollar on Tuesday, marking a decrease of 1 paisa.
Since October 11, the local currency has been facing difficulty bouncing back from its lowest value of 84.10 against the dollar. Analysts say the rupee is facing downward pressure because FIIs are consistently selling Indian equities to seek higher returns in the Chinese market. Additionally, it has also been mentioned that an increase in US treasury yields caused worries that the Federal Reserve could decrease the pace of its rate cuts, prompting investors to seek out safe-haven assets. At the same time, the dollar index, measuring the dollar's power against a collection of six currencies, increased by 0.06 pc to reach 103.97.
In futures trading, the international benchmark Brent crude dropped by 0.22 percent to reach USD 75.87 per barrel. On the homegrown stock market, the Sensex dropped by 96.34 points, equivalent to 0.12 percent, to reach 80,124.38 points. The Nifty declined by 32.95 points, representing a 0.13 percent drop, reaching 24,439.15 points. Both indexes fell by over 1 percent on Tuesday. According to exchange data, on Tuesday, foreign institutional investors (FIIs) sold shares worth Rs 3,978.61 crore in the capital markets.
FIRST Business Portal addressing the potential of business capability of North East Region.
