Rupee slips 2 paise to close at 84.49 against dollar, marking worst month since March

The Indian rupee declined by 2 paise connected Friday, settling astatine 84.49 against the US dollar, pressured by persistent overseas money outflows and month-end dollar request from importers. This comes aft the rupee logged its worst monthly show since March, falling 0.5 percent successful November, reflecting planetary dollar spot station the U.S. predetermination results and geopolitical tensions.

The currency touched an intra-day debased of 84.50, conscionable shy of its beingness closing debased recorded connected November 21. Over the month, the rupee faced headwinds from beardown dollar request and dependable overseas organization capitalist (FII) outflows, totaling Rs 11,756.25 crore connected Thursday alone.

Global cues measurement connected rupee

Forex traders cited a robust dollar, fueled by heightened U.S. economical resilience and geopolitical concerns, arsenic a important resistance connected the rupee. Anuj Choudhary, Research Analyst astatine Mirae Asset Sharekhan, noted, “We expect the rupee to commercialized with a antagonistic bias connected a beardown dollar and geopolitical tensions betwixt Russia and Ukraine. Any surge successful crude lipid prices amid these tensions whitethorn besides measurement connected the rupee.”

Silver linings enactment the currency

The rupee’s losses were cushioned by affirmative home equities and softer crude lipid prices. Brent crude, the planetary benchmark, fell 0.30 percent to USD 73.06 per barrel successful futures trade. The dollar index, which measures the greenback's spot against six currencies, softened by 0.15 percent to 105.88.

Choudhary added, “A affirmative code successful home markets and RBI involution whitethorn enactment the rupee astatine little levels. USD-INR is expected to commercialized successful a scope of 84.35 to 84.70.”

Markets and outlook

India's Q2 FY25 GDP information remains a captious cue for traders, alongside crude lipid dynamics and month-end importer demand. The Sensex jumped 759.05 points, ending astatine 79,802.79, portion Nifty closed 216.95 points higher astatine 24,131.10.

With the rupee’s trajectory facing headwinds, markets volition support an oculus connected further RBI measures and planetary developments impacting the dollar.