Rupee closes flat at 84.91 against US dollar

Mumbai: The rupee settled flat at 84.91 against the US dollar on Tuesday, weighed down by disappointing trade balance data and weak domestic markets.

Forex traders said the rupee is likely to remain under pressure due to concerns over slowdown in the economy and dollar demand from importers and foreign banks.

At the interbank foreign exchange, the rupee opened at 84.89 and touched an all-time low of 84.93 against the greenback during intra-day trade. The unit finally ended the session flat at 84.91 against the dollar.

On the domestic macroeconomic front, India’s exports in November contracted 4.85 per cent year-on-year to $32.11 billion, while the trade deficit widened to an all-time high of $37.84 billion due to a record surge in gold imports.

The country’s gold imports in November reached a record high of $14.86 billion, registering a four-fold increase, mainly on account of festival and wedding demands, according to commerce ministry data. Gold imports stood at $3.44 billion in November 2023.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.17 per cent at 107.03.