Rupee falls 8 paise to 83.95 against U.S. dollar in early trade

Rupee falls to 83.95 against USD due to high oil prices and weak equities, with RBI intervention noted.

Rupee depreciated 8 paise to 83.95 against the US dollar in morning trade on Tuesday (August 27, 2024), weighed down by elevated crude oil prices and a muted trend in domestic equities.

Forex traders said Brent Crude, the international benchmark, was trading above the USD 80 per barrel mark, as fighting continued in the Middle East and attacks by Russia over Ukraine also increased geopolitical tensions.

At the interbank foreign exchange market, the local unit opened at 83.91, then lost further ground and touched 83.95, registering a loss of 8 paise from its previous close.

On Monday, the Indian rupee settled for the day 3 paise higher at 83.87 against the American currency.

Asian currencies fell after appreciating on Monday. The Indian rupee opened at 83.91 and is expected to trade in a small range of 83.85/95, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

According to CR Forex Advisors' Amit Pabari with the Reserve Bank firmly in control, the rupee is likely to remain within a narrow range.

"The Reserve Bank of India has been actively intervening in the market, consistently absorbing inflows and preventing the rupee from reaching what many consider its fair value," Pabari said.