Rupee Stays Flat Amid Mixed Signals: Domestic Equities Offer Support, But Foreign Outflows and High Crude Prices Pose Challenges

High Crude Prices

The rupee opened flat against the US dollar in early trade on Thursday. Positive domestic equities provided support, but this was offset by sustained foreign fund outflows and high crude oil prices.

Forex traders stated that the rupee is under pressure due to ongoing elections and foreign fund outflows, which is expected to ease once the election results are out.

The rupee opened at 83.45 against the American currency and touched 83.46 at the interbank foreign exchange market. On the previous day, it had settled at 83.46 against the US dollar. (High Crude Prices )

The dollar index, which measures the greenback’s strength against a basket of six currencies, was at 104.20, a decrease of 0.13 percent.

Brent crude futures, the global oil benchmark, rose by 0.40 percent to USD 83.08 per barrel. Amit Pabari, MD of CR Forex Advisors, mentioned that despite short-term pressure on the rupee due to internal factors, external conditions have turned in its favor.

He also added that in the short term, the rupee is expected to rise to around 83.20 to 83.00 levels, with medium-term expectations pointing to an appreciation to around 82.80 to 82.50 levels.

On the domestic equity market, the 30-share BSE Sensex was trading 118.73 points, or 0.16 percent higher at 73,105.76 points.

The broader NSE Nifty was up 50.50 points, or 0.23 percent, at 22,251.05 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth Rs 2,832.83 crore, according to exchange data.