The Indian rupee held steady on Thursday, closing on a flat note with a slight rise of 1 paisa at 84.07 (provisional) against the US dollar. The currency’s performance was impacted by ongoing foreign fund outflows and demand for the dollar from importers at the month’s end. Forex traders noted that intervention by the Reserve Bank of India (RBI) may have supported the rupee, helping it hold its ground at lower levels. At the interbank foreign exchange market, the rupee opened at 84.08 against the dollar and remained within a tight trading range throughout the day, eventually closing at 84.07 (provisional), which marked an increase of 1 paisa from its previous close. On Wednesday, the rupee had depreciated by 3 paise, finishing at 84.08 against the US dollar. It has been hovering near record lows, reaching its lowest closing point of 84.10 earlier on October 11. According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, the month-end demand continued to keep the rupee close to its low. He also noted that the RBI was selling dollars, keeping the rupee within a specific range. Bhansali further commented that market volumes were lower due to a holiday in most trading centres, which contributed to the rupee’s stable but cautious stance against the dollar. Looking ahead to the upcoming week, which coincides with the US election period, Bhansali predicts the rupee to trade within a range of 84.00 to 84.20. In global markets, the dollar index, which measures the dollar’s strength against a basket of six major currencies, was 0.08 per cent lower, trading at 103.91. Meanwhile, Brent crude futures, the benchmark for international oil prices, edged up by 0.22 per cent to USD 72.71 per barrel. In the domestic equity markets, both the Sensex and Nifty experienced declines. The Sensex dropped by 553.12 points, or 0.69 per cent, to close at 79,389.06, while the Nifty slipped by 135.50 points, or 0.56 per cent, ending at 24,205.35. Foreign institutional investors (FIIs) continued to exit the capital markets, selling shares worth Rs 4,613.65 crore on Wednesday, according to exchange data. On the macroeconomic front, government data released on Wednesday showed that the output for eight key infrastructure sectors grew by 2 per cent in September, significantly lower than the 9.5 per cent growth observed in the same period last year. Additionally, India’s fiscal deficit for the first half of the 2024-2025 financial year reached 29.4 per cent of the full-year target, as reported by the Centre. (With inputs from PTI)
31 October,2024 04:34 PM IST | MumbaiADVERTISEMENT
