Rupee falls 2 paise to 84.07 against U.S. dollar in early trade

Rupee weakens against dollar due to strong American currency, easing oil prices, RBI intervention, and foreign fund outflows.

The rupee opened on a flat note and depreciated 2 paise to 84.07 against the U.S. dollar in initial deals on Wednesday (October 30, 2024), weighed down by persistent foreign fund outflows and muted domestic equities.

Forex traders said the strength of the American currency in overseas markets dented investor sentiments, while easing crude oil prices and any intervention by the Reserve Bank of India (RBI) may support the local currency at lower levels.

At the interbank foreign exchange, the rupee opened at 84.06 against the greenback. In the initial trade, it touched 84.07, down 2 paise from its previous closing.

On Tuesday, the rupee gained 2 paise to settle at 84.05 against the U.S. dollar.

The local currency has been hovering around its all-time low level. Rupee touched its lowest closing level of 84.10 against the dollar on October 11.

According to traders, the rupee remains under intense pressure, mainly due to persistent foreign fund outflows.

"The Indian rupee remains firmly range-bound, trading between 83.90 and 84.10, with the RBI actively limiting any upside movement in the pair. This controlled approach suggests the rupee is likely to continue within this range, with a bias towards trading closer to the lower end," CR Forex Advisors MD Amit Pabari said.