Rupee remains under pressure; ends flat near record low of 88.79/$

Indian Rupee today: The domestic currency ended flat at 88.79 against the greenback on Thursday, according to Bloomberg

The Indian Rupee gave up early gains on Thursday and closed flat amid muted dollar movement and a dip in crude oil prices.  

 

The domestic currency ended flat at 88.79 against the greenback on Thursday, according to Bloomberg. The currency has fallen 3.71 per cent so far this year, while it also closed at a low of 88.79 on Wednesday. 

Rupee traded flat, showing limited volatility since last week, as global funds' selling eased and crude prices remained range-bound, Jateen Trivedi, VP Research Analyst - commodity and currency, LKP Securities, said. However, the currency continues to hover near lower levels, keeping concerns of further depreciation, potentially toward the 90 mark if global sentiment weakens, he said. 

 

 

"Focus for the next couple of days is on Federal Reserve Chair Jerome Powell’s speech and key US data on unemployment and nonfarm payrolls, all of which could drive sharp volatility in the forex market. The rupee range is expected between 88.45-88.95," Trivedi said. 

 

Foreign Portfolio Investors (FPIs) bought about ₹81.28 crore, mainly driven by participation in ongoing initial public offerings (IPOs), with Tata Capital’s issue subscribed three times, while LG Electronics' fully subscribed IPO remains open today, analysts said. 

 

Analysts noted that the potential US government shutdown and India's trade tariff issues with the US remain key factors that could influence the Rupee’s direction in the near term.

 

Over the past week, the pair has exhibited limited volatility, likely due to central bank interventions aimed at containing sharp fluctuations, Anindya Banerjee, head of currency & commodity research at Kotak Securities, said. "Continued FPI outflows suggest sustained demand for dollars, which could exert upward pressure on dollar-rupee; however, exporter dollar sales and active Reserve Bank of India (RBI) intervention are helping to cap the pair’s rise." 

 

The dollar index was slightly lower on Thursday, a day after it hit the highest level since early August. The measure of the greenback against a basket of six major currencies was down 0.01 per cent at 98.91.

 

In commodities, crude oil prices edged down after Israel and Hamas agreed to a ceasefire plan, which eased Middle-East risk premiums. Brent crude price was down 0.20 per cent at 66.12 per barrel, while WTI crude prices were lower by 0.27 per cent at 62.39 per barrel, as of 3:35 PM IST.