Item 1 of 2 Indian twenty rupee currency notes are displayed at a roadside currency exchange stall in New Delhi, India, May 24, 2024. REUTERS/Priyanshu Singh/File Photo
MUMBAI, Oct 24 (Reuters) – The Indian rupee ended largely unchanged on Thursday, as likely outflows from local equities prevented it from mirroring the rise in its Asian peers, although state-run banks’ dollar sales helped keep the currency above its all-time low.
The rupee closed at 84.0775 against the U.S. dollar, compared with its close at 84.08 in the previous session. It hit a record low of 84.0825 earlier in the week.
The dollar index declined 0.2% to 104.1 after touching a near three-month peak on Wednesday, while Asian currencies were mostly stronger on the day.
Likely outflows from local stocks kept the rupee under pressure but dollar offers from state-run banks prevented a steeper decline, a trader at a large private bank said.
“Like on most days this week, state-run banks were on offer (on USD/INR) near 84.0775-84.08,” most likely on the Reserve Bank of India’s (RBI) behalf, the trader added.
The RBI’s routine interventions have helped the rupee avert sharp declines despite equity outflows surging to $9 billion for the month and the gains in Treasury yields and the dollar on heightened odds of a second term for Donald Trump as U.S. president.
“Financial markets have been gripped by the recent dollar upmove, which has kept USD/INR above 84,” DBS Bank said in a note.
“Looming U.S. elections and markets pricing out aggressive Fed rate cut bets are likely to keep the rupee and INR bonds on soft ground.”
The rupee has weakened about 0.3% this month, while the 10-year Indian bond yield has risen 7 basis points to 6.82%.
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Reporting by Jaspreet Kalra; Editing by Savio D’Souza
Our Standards: The Thomson Reuters Trust Principles.
