Rupee falls 2 paise to 83.81 against U.S. dollar in early trade

Mumbai: Rupee falls to 83.81 against US dollar due to foreign fund outflow, volatile global markets, and strengthening dollar.

The rupee fell 2 paise to 83.81 against the U.S. dollar in early trade on Tuesday (October 1, 2024), tracking massive outflow of foreign funds amid volatile global markets.

Forex traders said a strengthening American currency weighed down the Indian unit against major rivals, though retreating crude oil prices and recovery in domestic equity markets resisted a steep fall in the rupee.

They said monetary and fiscal stimulus announced by China triggered the withdrawal of foreign funds as investors preferred better-performing Chinese markets.

At the interbank foreign exchange, the local unit opened at 83.81 against the greenback, registering a loss of 2 paise from its previous closing level.

On Monday (September 30), the rupee settled 10 paise lower at 83.79 against the American currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.02% to 100.54.

Brent crude, the international benchmark, declined 0.29% to 71.77 in futures trade.