Rupee settles flat at 84.07 against U.S. dollar for second straight session

Rupee remains flat at 84.07 against US dollar amid negative equity markets and foreign fund outflow.

The rupee settled flat at 84.07 (provisional) against the US dollar for the second straight session on Tuesday (October 22, 2024), tracking negative domestic equity markets and unabated outflow of foreign funds.

The local unit was also weighed down by elevated crude oil prices as well as firm American currency amid rising U.S. treasury yields, forex traders said.

At the interbank foreign exchange market, the domestic unit opened at 84.07 against the greenback and witnessed a restricted movement between 84.06 and 84.08 during the session. The unit finally settled at the previous day's closing level of 84.07 (provisional) against the dollar.

On Monday, the rupee settled flat at 84.07 against the US dollar.

The Indian currency has been struggling to recover since October 11 when it closed at its lowest level of 84.10 against the dollar.

According to analysts, the rupee has been under pressure due to the continuous selling of Indian equities by FIIs in pursuit of better gains from the Chinese market.

Also, they said, a surge in the US treasury yields raised concerns about slower rate cuts by the Federal Reserve, steering investors towards a safer bet dollar.