Mumbai: The Indian rupee witnessed range-bound trade against the US dollar in initial deals on Tuesday. As per forex traders, sustained foreign fund outflows, elevated crude oil prices and the strength of the American currency in the overseas markets weighed upon the Indian currency.
At the interbank foreign exchange, the Indian rupee opened at 84.06 against the US dollar and traded in a tight range. In the initial trade, it touched 84.07, registering a fall of 7 paise over its previous close. On Monday, the Indian rupee recovered from its all-time low levels and appreciated 5 paise to close at 84.05 against the US dollar.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.05 per cent lower at 103.25. Foreign institutional investors (FIIs) were net sellers in the Indian capital markets on Monday, as they offloaded shares worth Rs 3,731.59 crore.
On the domestic macroeconomic front, the retail inflation rate in India surged to a nine-month high of 5.49 per cent in September. The consumer price index (CPI)–based retail inflation was 3.65 per cent in August and 5.02 per cent in September 2023. The previous high inflation rate was witnessed in December 2023 at 5.69 per cent.
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