Kumar Bahukhandi
An Indian rupee coin rests on a US dollar banknote in this representational photograph.
Elevated crude oil prices, persistent foreign fund outflows and a strong dollar limit gains in the domestic currency
Key Highlights
- Rupee opens 3 paise higher at 94.78 against the US dollar on Friday.
- The domestic currency had settled at 94.81 on Thursday.
- Brent crude near USD 113 a barrel and foreign fund outflows weigh on sentiment.
- Benchmark equity indices advance despite pressure on the currency.
Mumbai: The rupee edges up 3 paise to 94.78 against the US dollar in early trade on Friday, October 23, amid continued pressure from elevated crude oil prices and foreign fund outflows. The domestic currency trades within a narrow range as global dollar strength keeps sentiment subdued.
Marginal Gain at Opening
At the interbank foreign exchange market, the rupee opened at 94.78 against the American currency, improving by 3 paise from Thursday’s closing level of 94.81.
The modest rise came as benchmark domestic equity indices advanced in early trading, while external pressures continued to constrain the currency’s gains.
Crude Prices and Outflows Weigh
Forex traders attributed the pressure on the rupee to persistent macroeconomic challenges, including a firm US dollar, foreign institutional investor outflows and Brent crude prices hovering near USD 113 a barrel.
These factors kept the domestic currency’s opening recovery limited despite the positive movement in equities
