December 23, 2024
New Delhi, India
Rupee Analysis
Rupee failed to maintain its recovery trajectory, trading flat at 85.04 against the US dollar in early trade on Monday. The local currency continues to grapple with a strong dollar and unabated foreign fund outflows.
Market Performance:
- Opening Rate: The rupee opened at 85.02, matching Friday’s closing level of 85.04.
- Dollar Index: Rose by 0.13% to 107.49, maintaining its strength against a basket of currencies.
- Crude Oil Prices: Brent crude climbed 0.47% to $73.28 per barrel due to easing U.S. economic concerns.
Key Factors Influencing the Rupee:
- Strong Dollar Demand: High crude oil prices and geopolitical tensions have intensified dollar demand.
- FII Activity: Foreign Institutional Investors were net sellers on Friday, offloading ₹3,597.82 crore in Indian equities.
- RBI Forex Data: India’s forex reserves fell by $1.988 billion to $652.869 billion for the week ending December 13.
Domestic Market Impact:
- Positive sentiment in equity markets provided limited support. The Sensex surged 543.48 points (0.70%) to 78,585.07, and the Nifty gained 186.10 points (0.79%) to 23,773.60.
Outlook:
Forex traders anticipate the dollar index to stay elevated, given fears of delayed interest rate cuts by the U.S. Federal Reserve in 2025, signaling continued pressure on the rupee.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
