Rupee turns flat at 84.07 against US dollar on foreign fund outflow

The rupee stayed flat at 84.07 against the US dollar in early trade on Tuesday as positive sentiment in domestic equity markets was negated by the unabated outflow of foreign funds.

The local unit resisted the fall on the back of the retreating dollar and a downward movement in the crude oil prices, forex traders said.

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

On Monday, the rupee settled flat at 84.07 against the US dollar, a tad higher from its all-time low of 84.10 recorded on October 11.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 103.79.

Brent crude, the international benchmark, declined 0.22 per cent to $74.13 per barrel in futures trade.

On the domestic equity market front, Sensex rose 180.46 points, or 0.22 per cent, to 81,331.73 points. The Nifty also advanced 61.25 points, or 0.25 per cent, to 24,842.35 points.

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

Analysts attributed the unabated outflow of FIIs to a further rate cut by the Chinese central bank and a muted sentiment towards domestic corporate earnings.