Rupee settles flat against US dollar amid global turmoil

The rupee settled flat at 83.27 against the US dollar on Monday, amid a weak trend in domestic equities and surging crude oil prices in the international markets.

The safe-haven dollar gained ground amidst heightened concerns in the West Asia, forex traders said.

The domestic unit opened at 83.24 and finally settled at 83.27 against the American currency. During the day, the rupee witnessed an intra-day high of 83.21 and a low of 83.28 against the greenback.

The dollar index, which gauges the greenback”s strength against a basket of six currencies, was trading 0.43 per cent higher at 106.49.

Brent crude futures, the global oil benchmark, rose 3.29 per cent to USD 87.36 per barrel.

The rupee”s movement was largely muted on Monday, as investors weighed the impact of the ongoing Israel-Hamas conflict and the rising crude oil prices. The domestic currency is expected to remain volatile in the near term, as investors remain cautious about the global economic outlook.

Domestic equity markets also fell on Monday, with the BSE Sensex and NSE Nifty closing down 0.73 per cent and 0.72 per cent, respectively. Foreign institutional investors (FIIs) were net sellers in the Indian capital market on Friday, offloading shares worth Rs 90.29 crore.

Overall, the Indian rupee is expected to remain under pressure in the near term, as investors remain cautious about the global economic outlook. The currency is likely to be volatile in the near term, as it reacts to news and developments to the Israel-Hamas conflict, crude oil prices, and the US Federal Reserve”s monetary policy.