On Tuesday, November 11, the Indian Rupee traded in a limited range, gaining 6 paise against the US Dollar, reaching 88.67. The weakness in the US Dollar, amid concerns about the long-term health of the US economy, provided support to the domestic currency at lower levels.
Foreign exchange traders noted that sluggish domestic stock markets and the outflow of foreign capital had impacted investor sentiment.
In the interbank foreign exchange market, the rupee opened at 88.79 against the US Dollar and then moved to 88.67, showing a gain of 6 paise compared to the previous closing. Later, the rupee was trading at 88.71 against the Dollar. On Monday (November 10), the rupee had closed at 88.73 against the Dollar.
Traders also said that positive global cues, including progress on the US government shutdown bill and optimism surrounding the upcoming US trade deal, had supported the local currency.
US President Donald Trump supported the bipartisan deal that would end the US government shutdown in the coming days. IFA Global, in a research note, mentioned that India had reduced its purchase of Russian crude oil, and Trump said that at some point, he would lower tariffs on India.
Trump also stated that the US is “very close” to reaching a “fair trade deal” with India. He further added that “at some point” he would reduce the tariffs imposed on New Delhi. Trump remarked on Monday, “We are making a deal with India that is quite different from the previous agreements. So, they don’t like me right now, but they will like us again.”
Meanwhile, the Dollar Index, which measures the strength of the US Dollar against six major currencies, was up by 0.06% at 99.65. Global oil benchmark Brent crude futures were trading at $63.97 per barrel, down by 0.14%.
On the domestic stock market front, in early trading, the Sensex fell by 175.32 points to 83,360.03, while the Nifty dropped by 51.60 points to 25,522.75. According to exchange data, foreign institutional investors (FIIs) sold shares worth ₹4,114.85 crore on Monday.
