Rupee strengthens by 8 paise to 84.38 against US dollar in early trade

The rupee recovered from its all-time low, appreciating by 8 paise to 84.38 against the US dollar in Monday’s early trade, supported by lower crude oil prices

The Indian rupee recovered from its all-time low, appreciating by 8 paise to 84.38 against the US dollar in early trade on Monday. This recovery occurred despite a stronger US dollar and consistent foreign fund outflows, according to PTI.

Forex traders noted that a decline in global crude oil prices supported the local currency. At the interbank foreign exchange market, the rupee opened at 84.42 before strengthening further to 84.38 against the dollar, trading 8 paise higher than its previous close.

On Thursday, the rupee had declined by 7 paise, hitting a historic low of 84.46 against the US dollar. Markets remained closed on Friday due to Guru Nanak Jayanti.

Meanwhile, the dollar index, which measures the greenback’s performance against six major currencies, rose slightly by 0.06 per cent to 106.68. Brent crude futures, the global benchmark for oil, also showed a minor increase of 0.51 per cent, trading at USD 71.40 per barrel.

According to PTI, analysts suggested that domestic inflationary pressures continue to weigh on the rupee. Wholesale price inflation reached a four-month high of 2.36 per cent in October, driven by rising food and manufacturing costs, as reported in government data released last Thursday.

Retail inflation also breached the Reserve Bank of India’s (RBI) upper tolerance level, climbing to a 14-month high of 6.21 per cent in October, primarily due to rising food prices.

On the domestic equity markets, the Sensex was trading 125.08 points, or 0.16 per cent lower, at 77,455.23, while the Nifty declined by 20.15 points, or 0.09 per cent, to 23,512.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, offloading shares worth ₹1,849.87 crore, as per data from exchanges.

India’s merchandise exports in October witnessed significant growth, rising 17.25 per cent year-on-year to USD 39.2 billion, marking the highest increase in over two years. However, the trade deficit widened to USD 27.14 billion sequentially.

Meanwhile, the Reserve Bank of India reported a decline in the country's foreign exchange reserves, which dropped by USD 6.477 billion to USD 675.653 billion for the week ending November 8, PTI noted.

(With inputs from PTI)

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!