Rupee Closes Flat Against US Dollar Amid Strong FII Outflows
The recent pressure on the rupee, trading near its all-time low, has come from foreign equity outflows from India and the greenback's strength globally.
(Image Source: Envato)
The Indian rupee closed flat against the US dollar on Friday. The local currency ended the trading day at Rs 84.081, compared to the previous day's close of 84.077.
The recent pressure on the rupee, trading near its all-time low, has come from foreign equity outflows from India and the greenback's strength globally.
"The rupee is expected to remain in the range of 84.00 to 84.15 on Monday as we head into a shortened week on account of Diwali," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
The 84.10 mark appears to be a crucial support level as the Reserve Bank of India actively steps in to manage volatility, according to Amit Pabari, managing director at CR Forex Advisors. "This intervention is evident in the rupee's relative stability, making it one of the least volatile currencies among emerging markets recently."
"On the macroeconomic front, India continues to show promising growth," he said.
The dollar traded near three-month high against major currencies amid growing bets of a second Trump presidency and US economic data that eased recession fears.
The dollar index, which measures the strength of the greenback against a basket of six currencies, stood at 104.069 (up 0.1%). It fell more on profit booking than any reversal of direction, and the 10-year yield also has fallen to some extent, as per Bhansali.
Brent crude oil prices edged higher by 0.44% to $74.71 per barrel. Oil remained rangebound while the Middle East conflict continued to keep the prices bid and were heading for a weekly gain.
