Rupee falls 3 paise to close at 84.32 against U.S. dollar

Representational image. File

The rupee fell 3 paise to close at 84.32 (provisional) against the U.S. dollar on Tuesday (November 26, 2024), as the greenback strengthened on Donald Trump’s tariff plans and a muted trend in domestic equities.

Forex traders said U.S. President elect Donald Trump’s comments that he would impose additional 10% tariffs on Chinese goods and impose a 25% levy on imports from Mexico and Canada has affected risk sentiment.

Traders are also awaiting the Federal Open Market Committee (FOMC) minutes of the November 7 meeting for further cues.

At the interbank foreign exchange, the rupee opened at 84.27 and touched an intra-day high of 84.22 and low of 84.35 against the greenback. The unit ended the session at 84.32 (provisional) against the dollar, registering a fall of 3 paise over its previous close.

On Monday (November 25, 2024), the rupee appreciated 12 paise to close at 84.29 against U.S. dollar.

“Traders look forward to the FOMC minutes of the November 7 meeting to be released later tonight. The USD-INR pair may continue to trade in the 84-84.50 in the short term. Interim support is at 84.11,” said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.06% at 106.87.

Brent crude, the global oil benchmark, rose 0.79% to $73.59 per barrel in futures trade.

The overall strength of the American currency and elevated crude oil prices are likely to strain India’s trade balance, creating challenges for the rupee, forex traders said.

In the domestic equity market, the 30-share BSE Sensex fell 105.79 points, or 0.13%, to close at 80,004.06 points, while Nifty fell 27.40 points, or 0.11%, to settle at 24,194.50 points.

Foreign Institutional Investors (FIIs) turned net buyers in the capital markets on Monday (November 25, 2024), purchasing shares worth ₹9,947.55 crore, according to exchange data.