Rupee falls 2 paise to all-time low of 84.40 against U.S. dollar in early trade

Rupee expected to trade between 83.80 and 84.50, RBI defends currency, dollar index up, oil prices fall.

The rupee slipped 2 paise to an all-time low of 84.40 against the U.S .dollar in early trade on Tuesday (November 12, 2024), as persistent foreign fund outflows and strength of the American currency in the overseas market dented investors' sentiments.

Forex traders said the rupee is expected to trade between 83.80 and 84.50 in the medium term with the Reserve Bank of India likely limiting any significant downside, aided by its robust foreign exchange reserves.

At the interbank foreign exchange, the rupee opened at 84.39 against the greenback, then fell further to an all-time low of 84.40, registering a fall of 2 paise over its previous close.

On Monday, the rupee dropped 1 paisa to hit a new lifetime low of 84.38 against the U.S. dollar, registering the fourth straight session of loss.

"The Reserve Bank of India plays a key role in stabilizing the rupee, curbing its depreciation. Despite the Emerging Market Currencies Index dropping 6.30% from October 2, the rupee fell only 0.6%, reflecting the RBI's strong defence of the currency," CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.09% at 105.63.

Brent crude, the global oil benchmark, fell 0.25% to USD 71.65 per barrel in futures trade.