Rupee trades in narrow range against US dollar in early trade

Rupee rises slightly against US dollar amid geopolitical pressures, foreign outflows, and domestic equities; Brent oil surges.

Rupee opened on a flat note and rose just 3 paise from its all-time low level to 84.47 against the US dollar in morning trade on Friday (November 22 2024), as the support of positive domestic equities was negated by geopolitical pressures and unabated foreign portfolio outflows.

The US dollar strengthened in the overseas market and Brent oil continued to move up as fighting between Ukraine and Russia continued to gain investors' attention.

Moreover, foreign institutional investors have continued their equities selling mode and kept the dollar well bid.

At the interbank foreign exchange, the rupee opened at 84.48 and moved in a tight range and touched 84.47 against the greenback, registering a gain of just 3 paise over its previous close.

On Thursday, the rupee depreciated 8 paise to settle at an all-time low of 84.50 against the US dollar.

"The Indian rupee made a new low on Thursday after the Reserve Bank of India (RBI) allowed it to fall as the US dollar index moved higher to 107.10 and US yields continued to remain at 4.42 per cent," Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Bhansali further added that the rupee has depreciated 0.5 per cent in November it has managed to outperform most Asian currencies as RBI managed it with its huge reserves.