Rupee ends flat at 84.07/$

Mumbai: The rupee on Monday settled flat at 84.07 against the US dollar amid strong American currency against major rivals overseas and relentless foreign fund outflows. Investors remained cautious and stayed away from riskier assets due to geopolitical uncertainties, forex dealers said. At the interbank foreign exchange market, the local unit opened at 84.06 against the greenback and stayed almost flat throughout the session. The unit finally settled at 84.07 against the dollar, unchanged from its previous session’s closing level. On Friday, the rupee slipped 1paisa to close at 84.07 against the US dollar, a tad higher from its all-time low of 84.09 recorded on August 5 this year. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.19 per cent to 103.50. On the domestic market front, Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth Rs 5,485.70 crore, according to exchange data. Analysts attributed the unabated outflow of FIIs to a further rate cut by the Chinese central bank and a muted sentiment towards domestic corporate earnings. According to RBI data released on Friday, India’s forex reserves declined by $10.746 billion to $690.43 billion for the week ended October 11. In the preceding week, the reserves had dropped by $3.709 billion to $701.176 billion.