By laksh5382 
Rupee Facing pressure from a stronger US currency as well as persistent outflow of foreign funds, the US currency traded steady at 84.08 (provisional) against the US dollar on Wednesday.
Forex traders said weak sentiment in domestic equity markets ahead of the US presidential election and volatile geopolitics have kept investors on the sidelines.
At the interbank foreign exchange market, the domestic unit opened at 84.07 against the greenback and traded in a tight range throughout the session. The unit eventually closed at the previous session’s closing level of 84.08 (provisional) against the dollar.
On Tuesday, the rupee fell by 1 paise and closed at 84.08 against the US dollar. The local currency has been struggling to recover from its lowest level since October 11, when it closed at 84.10 against the dollar.
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According to analysts, the rupee has been under pressure due to selling by foreign investors in search of better profits from the Chinese market.
Additionally, he said, US Treasury yields rising to record levels has heightened concerns that the Federal Reserve may slow its rate-cutting move, driving investors toward safe-haven assets.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee traded flat amid a strong US dollar and rising US treasury yields. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.28 percent to 104.19.
He said the dollar strengthened amid uncertainty over the US presidential elections, while bond yields rose on the prospect of a rise in the US fiscal deficit.
of IMF Global growth forecast at 3.2 per cent, down from its previous estimate of 3.2 per cent, also weighed on investor sentiment.
Chaudhary further said that investors can take cues from the US PMI data this week. “USD-INR spot price is expected to remain in the range of 83.90 to 84.30,” he said.
Meanwhile, international benchmark Brent crude fell 1.17 per cent to $75.15 per barrel in futures trade.
On the domestic equity market front, Sensex It closed at 80,081.98 with a decline of 138.74 points or 0.17 percent. nifty Also fell by 36.60 points or 0.15 percent to 24,435.50 points. On Tuesday, both the indices closed with a huge fall of more than 1 percent.
Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday as they sold shares worth ₹3,978.61 crore, according to exchange data.