Rupee settles 11 paise lower at 83.80 against U.S. dollar amid steep fall in equity markets

Rupee falls against US dollar due to volatile crude oil prices and foreign fund outflow, but supported by weak greenback.

Rupee depreciated 11 paise to settle at 83.80 (provisional) against the U.S. dollar on Monday (September 30, 2024) taking cues from equity markets that saw a steep fall of over 1% amid volatile crude oil prices and outflow of foreign funds.

However, a weak greenback against major currencies supported the local unit, Forex traders said, while investors showed muted participation awaiting cues from domestic macroeconomic data to be released this week.

At the same time, they said, monetary and fiscal stimulus announced by China triggered withdrawal of foreign funds as investors preferred better-performing Chinese markets.

At the interbank foreign exchange, the local unit opened at 83.72 and hit the intra-day low of 83.81 against the greenback during the session. The unit finally settled at 83.80 (provisional) against dollar, registering a loss of 11 paise from its previous closing level.

On Friday (September 27, 2024) the rupee fell 3 paise to settle at 83.69 against the American currency.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee declined on weak domestic markets.

"Weaker than expected core personal consumption expenditures (PCE) price index and personal income data from the US also weighed on the dollar and raised optimism on rate cuts by the Fed," he said, adding that rupee is expected to trade with a slight negative bias amid volatile crude oil prices on the back of the escalation of geopolitical tensions in the Middle East.