Rupee rises 4 paise to settle at 84 against US dollar

Rupee trades in narrow range amid strong dollar, weak equities, and RBI intervention, supported by lower crude oil prices.

The rupee witnessed a range-bound trade and strengthened marginally by 4 paise to 84 (provisional) against the U.S. dollar on Wednesday (October 16, 2024) as easing crude oil prices supported investor sentiments.

Forex traders said the rupee traded in a narrow range as a strong dollar and a muted tone in the domestic equities weighed on the local unit, while weak crude oil prices and any likely intervention by the Reserve Bank of India (RBI) supported the local currency at lower levels.

At the interbank foreign exchange market, the local unit opened at 84.03 and traded in a narrow range of 83.98 and 84.07 and finally settled for the day at 84.00 (provisional), higher by 4 paisa over its previous close of 84.04 against the dollar.

"The local currency pair was weighed down by significant foreign fund outflows this month amid strength of the American currency in the overseas market which surged to a two-month high of 103.25.

"Overall Foreign Institutional Investors offloading $8 billion in October also weighed on sentiments for rupee in the current month," said Maneesh Sharma, AVP - Commodities & Currencies, Anand Rathi Shares and Stock Brokers.

Analysts said investors are awaiting the U.S. retail sales and jobless claims reports, due on Thursday (October 17, 2024), for cues on the future path of U.S. policy rates which could provide crucial direction to dollar, while likely intervention by the Reserve Bank of India (RBI) could also support the local currency pair at lower levels.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was marginally down by 0.01% to 103.25 points.