Rupee Struggles Amidst Global and Domestic Pressure

The Indian Rupee faced a marginal decline against the US dollar, trading in a narrow range due to foreign fund withdrawals, weak domestic equities, and a robust American currency. Factors like crude oil price drops and moderated geopolitical tensions provided some relief, despite volatile economic indicators.

The Indian Rupee edged down by 4 paise, closing at 84.06 against the US dollar in interbank trading on Thursday. This fluctuation is attributed to foreign fund outflows, underperforming domestic equities, and a strong US dollar.

Forex analysts noted that while the rupee was under pressure, a fall in crude oil prices and stable geopolitical conditions offered some resistance to further declines. Despite persistent market tensions, the rupee's movement remained within expected bounds.

Market experts project continued rupee challenges due to international factors, while domestic economic data has sparked mixed reactions. Meanwhile, the dollar index made slight gains, bolstered by China's lackluster stimulus measures and weak euro conditions before the ECB meeting.

(With inputs from agencies.)