Indian rupee records an all-time low of 83.33 against US dollar, Check deets here

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• Nov 1, 2023 | Poonam Nath

Furthermore, the dollar index fell slightly by 0.13% to 106.42. The rupee had likewise settled at...

Digital Desk: Analysts report that the Indian rupee stayed stable versus the US dollar on Monday, after getting support from the Reserve Bank of India (RBI), which helped offset month-end demand for dollars from importers. The local currency ended the day at 83.25 per dollar, the same as it did on Friday.

Furthermore, the dollar index fell slightly by 0.13% to 106.42. The rupee had likewise settled at 83.25 versus the US dollar the previous Friday.

The rupee's performance was aided by strong sentiment in the Indian stock market and a decline in crude oil prices. 

Analysts underlined potential obstacles ahead, such as geopolitical turmoil in the Middle East, which could increase demand for the US dollar as a safe haven. 

However, the importers and oil marketing companies (OMCs) seeking dollars, as well as unfavourable global market circumstances, might put pressure on the native currency.

According to Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas, the USD-INR exchange rate is expected to trade in the region of 83 to 83.60. Notably, the investors were likely to be cautious in the run-up to the FOMC meeting later this week.

Brent crude fell 1.05% to $89.53 per barrel in the oil market, while US West Texas Intermediate crude fell 1.18% to $84.53 per barrel.

On the local front, India's key stock indices rose on Monday, with the BSE Sensex closing 329.85 points (0.52%) higher at 64,112.65, and the NSE Nifty 50 rising 93.65 points (0.49%) to 19,140.90.

As per the Reserve Bank of India, India's foreign reserves fell by $2.36 billion to $583.53 billion during the week ended October 20.

According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth ₹1,500.13 crore on Friday, resulting in a net selling activity in the capital markets.