Representative image | Photo credit: Reuters

The rupee was flat at 84.07 against the US dollar in early trade on Tuesday (Oct 22, 2024) as positive sentiment in domestic equity markets was offset by unabated foreign fund outflows.

The local unit weathered the fall thanks to a retreating dollar and a downward move in crude oil prices, forex traders said.

At the interbank foreign exchange market, the rupee opened at 84.07 against the dollar and traded at a flat note in early deals.

On Monday (October 21, 2024), the rupee settled at 84.07 against the US dollar, a tad higher than the all-time low of 84.10 on October 11.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.04% to 103.79.

Brent crude, the international benchmark, fell 0.22% to $74.13 per barrel in futures trading.

In the domestic equity market, Sensex rose 180.46 points, or 0.22%, to 81,331.73 points. The Nifty also advanced 61.25 points, or 0.25%, to 24,842.35.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday (Oct 21, 2024) as they sold shares worth ₹ 2,261.83 crore, according to exchange data.

Analysts attributed the continued outflows from financial institutions to a further interest rate cut by the Chinese central bank and subdued sentiment on domestic corporate earnings.