Rupee trades in narrow range against U.S. dollar in early trade

Rupee trades range-bound, appreciates slightly against USD, impacted by foreign fund outflows and strong dollar.

The rupee witnessed range-bound trade and appreciated by just 1 paisa to 84.07 against the U.S. dollar in initial deals on Monday (October 28, 2024), weighed down by significant foreign fund outflows and the strength of the American currency in the overseas market.

Forex traders said the rupee is likely to trade in a narrow range during the day as the strong dollar weighs on the local unit, while positive domestic equities, weak crude oil prices and any intervention by the Reserve Bank of India (RBI) may also support the local currency at lower levels.

At the interbank foreign exchange, the rupee opened at 84.08 against the greenback. In the initial trade, it touched 84.07, registering a rise of 1 paisa over its previous close.

On Friday (October 25, 2024), the rupee edged lower by just 1 paisa to settle near an all-time low at 84.08 against the U.S. dollar.

The local currency touched its lowest closing level of 84.10 against the dollar on October 11, 2024.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.28% lower at 104.54.

Brent crude, the global oil benchmark, eased 4.39% to $72.71 per barrel in futures trade.