Mumbai: The Indian rupee stayed flat against the US dollar in early trade on Thursday. As per forex traders, elevated crude oil prices and continuous withdrawal of foreign funds from Indian capital market weighed upon the Indian currency. However, the weakening of the US dollar from its higher and positive trend in the Indian equity markets supported the Indian currency.
At the interbank foreign exchange, the Indian rupee opened at 84.06 against the US dollar and slipped 1 paisa to trade at previous day’s closing level in initial deals. On Wednesday, the Indian rupee had settled with a marginal gain of 1 paisa at 84.07 against the US dollar. The local currency has been struggling to recover since October 11, when it closed at its lowest level of 84.10 against the dollar.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, fell marginally by 0.07 per cent but remained elevated at 104.20.Foreign institutional investors (FIIs) were net sellers in the Indian capital markets on Wednesday, as they offloaded shares worth Rs 5,684.63 crore.