Rupee rises 5 paise to 84.05 against dollar

Mumbai: The rupee recovered from its all-time low levels and appreciated 5 paise to close at 84.05 against the US dollar on Monday supported by strong domestic equity markets.

Forex traders said the rupee was weighed down by the strong US dollar and elevated crude oil prices.

Moreover, the Reserve Bank of India’s intervention, backed by record-high reserves supported the local unit at lower levels, they said.

At the interbank foreign exchange, the rupee opened at 84.06 against the greenback and traded in a tight range of 84.05 and 84.07.

The unit settled for the day at 84.05, registering a rise of 5 paise over its previous close.

On Friday, the rupee fell 12 paise to a record low of 84.10 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 per cent higher at 102.97.

Forex traders said there has been significant foreign fund outflows and crude oil prices have surged by nearly 10 per cent, fuelled by Hurricane Milton’s impact on US production along with the tensions in the Middle East between Israel and Iran.

Meanwhile, India’s forex reserves dropped by $3.709 billion to $701.176 billion for the week ended October 4, the RBI said on Friday.

In the previous reporting week, the reserves had jumped by $12.588 billion

to an all-time high of $704.885 billion.