Mumbai
The Indian rupee closed flat at 84.08 against the US dollar on Wednesday, amid pressure from a stronger dollar and ongoing foreign fund outflows. It opened at 84.07 and traded within a narrow range throughout the session.
Forex traders noted that lackluster domestic equity markets and geopolitical uncertainty ahead of the US Presidential election kept investors cautious. The rupee has struggled to recover since hitting a low of 84.10 on October 11.
Analysts attribute the rupee’s pressure to heavy selling by foreign investors seeking better returns in China and rising US Treasury yields, which have driven investors toward safe-haven assets. The dollar index rose by 0.28% to 104.19, reflecting the greenback’s strength amid election uncertainties.
Anuj Choudhary, a research analyst at Sharekhan, indicated that the USD-INR spot price is expected to trade between 83.90 and 84.30. Meanwhile, Brent crude fell by 1.17% to $75.15 per barrel.
In the domestic equity market, the Sensex declined by 138.74 points to 80,081.98, while the Nifty fell by 36.60 points to 24,435.50. Both indices closed over 1% lower on Tuesday, with foreign institutional investors selling shares worth ₹3,978.61 crore.
