Rupee plunges 15 paise to settle at 84.44 against U.S. dollar

Rupee falls against U.S. dollar due to Trump's trade policies, crude oil prices, but supported by equity markets.

The rupee declined sharply by 15 paise to close at 84.44 (provisional) against the U.S. dollar on Wednesday (November 27, 2024) amid uncertainties surrounding U.S. President-elect Donald Trump’s trade policies and an increase in crude oil prices.

However, a strong show at the domestic equity markets, FII inflows along with a weakening dollar against major currencies supported the local unit at lower level, according to forex traders.

At the interbank currency exchange, the rupee opened at 84.38, lower by 9 paise from its previous close, but declined to an intra-day low of 84.48 during the session. It settled at 84.44 (provisional), 15 paise lower than Tuesday’s (November 26, 2024) close of 84.29.

According to analysts, U.S. President-elect Donald Trump’s indication of adopting aggressive trade policies added to the volatility in the currency.

“Rupee lost all its sheen it had gained on Wednesday (November 27, 2024) and fell to 84.48 before recovering as RBI sold dollars... but dollars were bought again on account of month-end demand and it (rupee) closed lower,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

“It is expected to be in the range of 84.30 to 84.55 on Thursday (November 28, 2024),” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.46% at 106.51.