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

Rupee opened on a flat note and rose just 4 paise from its all-time low level to 84.71 against the U.S. dollar in morning trade on December 5, 2024, as the support from positive domestic equities was negated by the broad strength of the American currency in the overseas market.

Rupee opened on a flat note and rose just 4 paise from its all-time low level to 84.71 against the U.S. dollar in morning trade on Thursday (December 5, 2024), as the support from positive domestic equities was negated by the broad strength of the American currency in the overseas market.

Forex traders said rupee is likely to remain under pressure in the near-term amid strong dollar and elevated in crude oil prices.

At the interbank foreign exchange, the rupee opened at 84.72 and moved in a tight range and touched 84.71 against the greenback, registering a gain of just 4 paise over its previous close.

On Wednesday, the rupee slumped by 7 paise to hits its lowest-ever closing level of 84.75 against the U.S. dollar.

"The upcoming RBI monetary policy meeting on December 6 will be pivotal, as a balanced stance on inflation and growth could further enhance sentiment and attract fresh inflows," CR Forex Advisors' Amit Pabari said.

The Reserve Bank's high-level panel on Wednesday started deliberations on the bi-monthly monetary policy amid expectations of status quo on interest rate as the retail inflation is above the upper tolerance level of the Central bank.

The decision taken by the RBI Governor Shaktikanāta Das headed six-member Monetary Policy Committee (MPC) will be announced on Friday (December 6).