Early Thursday trading saw the rupee remain unchanged at 84.07 versus the US dollar due to high crude oil prices and ongoing foreign capital flight from the capital market.
According to forex dealers, the local currency did, however, find some support when the dollar fell from its higher level and the domestic equity markets showed signs of recovery. In early transactions, the rupee dropped 1 paisa to trade at the previous day’s closing level after opening at 84.06 against the US dollar at the interbank foreign exchange.
The rupee ended Wednesday’s trading day at 84.07, up just 1 paisa versus the US dollar. The local currency has been having difficulty recovering since closing at its lowest level of 84.10 against the dollar on October 11.
According to analysts, the rupee’s recovery has been hindered by the selling frenzy of foreign investors seeking greater returns from the Chinese market, while rising US Treasury yields have sparked concerns of a slower Fed rate decrease.
They claimed that investors were drawn to safe-haven investments in the weeks leading up to the US presidential election due to geopolitics’ unpredictability. The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, decreased by 0.07% but stayed high at 104.20.
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