In the recent development in the forex market, the Indian rupee has seen a flat trend against the US dollar, trading at 85.79 in early Monday trade. This comes despite positive movements in domestic equity markets, as concerns over foreign capital outflow and the strength of the American currency index persist.
The rupee opened at 85.77 and then settled at its previous closing level of 85.79 against the US dollar. While falling crude oil prices globally have provided some support, the looming presence of a higher dollar index and US treasury yields have kept investors cautious.
Notably, the rupee hit a lifetime intra-day low of 85.80 against the dollar on December 27. On the other hand, the dollar index, which measures the greenback against a basket of currencies, saw a slight dip to 108.74, down by 0.05%.
Furthermore, Brent crude, the global oil benchmark, witnessed a 0.18% decrease to $76.37 per barrel in futures trade. In the Indian stock market, the BSE Sensex rose by 0.24% to 79,415.63 points, while Nifty climbed 0.25% to 24,065.85 points.
Foreign institutional investors (FIIs) have offloaded ₹4,227.25 crore in the capital markets on a net basis on Friday, according to exchange data. Additionally, India’s forex reserves fell by $4.112 billion to $640.279 billion during the week ended December 27.
Overall, the rupee’s performance against the US dollar continues to be influenced by various domestic and global factors. As investors closely monitor market developments, the currency’s movement remains subject to fluctuations in the global economic landscape.
