The Indian rupee hit a fresh closing record as it closed little changed against the US dollar on Tuesday on likely dollar selling by the Reserve Bank of India amid the continuous selling of domestic stocks by global funds.
The rupee closed flat at Rs 84.076 against the dollar, according to Bloomberg data. The domestic currency had closed at Rs 84.066 against the greenback on Monday.
Despite a huge dollar demand, the Reserve Bank of India ensured that the rupee does not cross 84.08 for today as FPIs continued their onslaught on Indian indices, according to Anil Bhansali, executive director at Finrex Treasury Advisors LLP.
The rupee was in a two paise range for the day with the RBI protecting it at 84.08 and FPIs buying all day near to 84.07, stated Bhansali.
The US dollar index, which measures the strength of the greenback against basket of six currencies, declined 0.07% to 103.94, the highest since Aug. 1, while the US 10-year bond yields moved 3 basis points higher to 4.21% on expectations that the Federal Reserve may take measured approach to cut in interest rates and uncertainty on the presidential elections.
Brent oil was up at $ 74.98 as demand fears from China and the conflict in Middle East kept it range bound with hardly any directional movement. The market was also looking at dollar strength and the higher for longer interest rates talk, added Bhansali.
IEA also warned that weakness in top importer China will continue to weigh on the oil markets in the coming years, Bhansali said.
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