Rupee Opens Flat For The Second Day Against Dollar Amid RBI Intervention

The Indian rupee opened flat against the US dollar on Tuesday amid foreign fund outflows and RBI intervention.

The local currency opened little changed at Rs 84.40, according to Bloomberg data. It had closed at Rs 84.39 on Monday.

After heavy selling seen last week in Asian stocks, world stocks snapped a four-day losing streak on Monday, said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

The rupee is expected to trade in Rs 83.30-83.50 range, he said. "RBI has been, however, firmly standing at 83.41 and has not allowed any movement beyond this level," he stated.

The dollar index, which tracks the performance of the greenback against a basket of 10 leading global currencies, was trading 0.10% lower at 106.167 as of 08:55 a.m.

Moody’s has forecast India’s economic growth at 7.2% for 2024, providing a more positive outlook for the Rupee, said Amit Pabari, managing director at CR Forex Advisors.

"Further supporting the rupee is the easing of tensions in the Middle East, which has helped stabilise oil and gold prices, supporting India’s trade balance," Pabari said.

"The Federal Reserve's cautious stance and foreign fund outflows amounting to $14 billion from October remain formidable challenges to the rupee's stability," he added.

International benchmark Brent crude oil was 3.18% up at $73.30. Oil prices were little changed following a surge on Monday, driven by simmering geopolitical tensions.

West Texas Intermediate settled above $69 a barrel after the US approved the use of long-range missiles by Ukraine within Russian territory, heightening tensions between the two countries.