Downside in INR limited by recovery in local equities

The Indian rupee settled flat at 84.07 (provisional) against the US dollar on Tuesday, as the support from positive domestic markets and a softening crude oil prices was negated by persistent foreign fund outflows. Indian shares recovered from an early slide to end modestly higher on Tuesday. The benchmark S&P/BSE Sensex rose 363.99 points, or 0.45 percent, at 80,369.03, extending gains for a second straight session. The broader NSE Nifty index closed up 127.70 points, or 0.2 percent, at 24,466.85. However, the rupee is hovering around record low levels as the strong dollar weighed on the local unit, while positive domestic equities, weak crude oil prices supported the local currency at lower levels. At the interbank foreign exchange, the rupee opened at 84.08 against the greenback. It traded in a tight range and ended the day at 84.07 (provisional), unchanged from its previous close.

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