Rupee holds steady at 84.07 against US dollar amid equity market gains and FII outflows

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The rupee remained flat at 84.07 against the US dollar in early trade on Tuesday as positive sentiment in domestic equity markets was offset by the continued outflow of foreign funds.

According to PTI, the local unit resisted a decline due to the retreating dollar and a downward movement in crude oil prices, as noted by forex traders. At the interbank foreign exchange, the rupee opened at 84.07 against the greenback and traded on a flat note in early deals.

On Monday, the rupee settled flat at 84.07 against the US dollar, slightly above its all-time low of 84.10 recorded on 11th October.

As per PTI, the dollar index, which measures the greenback's strength against a basket of six currencies, fell by 0.04 per cent to 103.79. Meanwhile, Brent crude, the international benchmark, declined by 0.22 per cent to USD 74.13 per barrel in futures trade.

On the domestic equity market front, Sensex rose 180.46 points, or 0.22 per cent, to 81,331.73 points, while the Nifty advanced 61.25 points, or 0.25 per cent, to 24,842.35 points.

PTI reports that foreign institutional investors (FIIs) were net sellers in the capital markets on Monday, offloading shares worth Rs 2,261.83 crore, according to exchange data. Analysts attributed the consistent outflow of FIIs to a further rate cut by the Chinese central bank and muted sentiment towards domestic corporate earnings.

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