Mumbai, November 13, 2023 : In Monday’s trading session, the Indian rupee faced a modest setback, closing 4 paise lower at 83.32 (provisional) against the US dollar. The currency’s performance was notably influenced by a prevailing negative trend in the domestic equities market. Forex traders pointed out that the rupee remained range-bound throughout the day.
Persistent foreign fund outflows also played a significant role in dampening the local unit’s strength. At the interbank foreign exchange market, the rupee commenced the day at 83.31 and touched a low of 83.33 against the greenback.
The negative sentiment in domestic equities seemed to have a cascading effect on the forex market, as investors turned cautious amid uncertainties. Simultaneously, continued foreign fund outflows acted as a further drag on the rupee’s valuation.
Market analysts are closely monitoring the evolving situation, considering both domestic economic indicators and global factors that could influence the currency’s trajectory. The Reserve Bank of India (RBI) and financial authorities maintain a watchful stance, ready to intervene if necessary to ensure stability in the currency market. As the week progresses, market participants will be attuned to developments that could shape the rupee’s performance in the foreign exchange market.