Rupee rises 8 paise to 84.38 against U.S. dollar in early trade

Rupee strengthens by 8 paise to 84.38 against USD despite outflow of foreign funds, supported by lower crude oil prices.

The rupee recovered from its lowest level and appreciated by 8 paise to 84.38 against the US dollar in early trade on Monday (November 18, 2024) despite a stronger American currency and sustained outflow of foreign funds.

Lower level of crude oil prices in the international market supported the recovery of local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 84.42 and strengthened further to 84.38 against the greenback, trading 8 paise higher from its previous close.

On Thursday (November 14, 2024) the rupee fell 7 paise to settle at its all-time low of 84.46 against the US dollar. Forex markets were closed on Friday on account of Guru Nanak Jayanti.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.06% at 106.68.

Brent crude, the global oil benchmark, rose 0.51% to $71.40 per barrel in futures trade.

Analysts said that India's inflation surge is putting additional pressure on the currency. Also, they said the record surge in the US Treasury yield has added strength to the dollar index.