Rupee Rises 1ps To 84.10/$

Mumbai: The rupee recovered from its all-time low level to settle 1paisa higher at 84.10 against the US dollar on Tuesday, supported by a recovery in the domestic markets and suspected intervention by the Reserve Bank of India. Forex traders said investors were cautious ahead of the US presidential election. Markets are bracing for potential volatility over the coming days, especially with the Federal Reserve’s monetary policy announcement also scheduled this week.

At the interbank foreign exchange, the rupee opened at 84.13 against the US dollar. During the session, the local currency oscillated between a high of 84.10 and a low of 84.13. It finally settled at 84.10, 1paisa higher from its previous close. On Monday, the rupee fell 4paise to close at a record low level of 84.11 against the US dollar. “Indian rupee touched fresh record lows amid uncertainty over US elections and FII outflows.

Elevated crude oil prices also weighed on the rupee. However, weak US Dollar and positive domestic markets prevented a sharp fall in the rupee,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. Choudhary further said the rupee is likely to trade with a negative bias on FII outflows and overall strength in the US Dollar. Elevated crude oil prices may also mount pressure on the rupee.