By laksh5382 
Rupee The US dollar witnessed a range-bound trade against the US dollar in early deals on Monday and it rose by just 1 paise to 84.07, hit by significant outflow of foreign funds and strengthening of the US currency in the overseas market.
Forex traders said the rupee is likely to trade in a tight range during the day as a stronger dollar put pressure on the local unit, while positive domestic equities, weak crude oil prices and any interest rate hike from the Reserve Bank of India (RBI). Interventions may also provide support. Local currency at lower level.
At the interbank foreign exchange, the rupee opened at 84.08 against the greenback. It reached 84.07 in early trade, showing an increase of 1 paise over its previous close.
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Also read: Currency Outlook: Dollar maintains momentum
On Friday, the rupee fell by just 1 paise and closed at an all-time low of 84.08 against the US dollar.
The local currency touched its lowest close of 84.10 against the dollar on October 11.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.28 percent lower at 104.54.
Global oil benchmark Brent crude fell 4.39 percent to $72.71 per barrel in futures trade.
According to traders, the rupee is under heavy pressure mainly due to continuous foreign fund withdrawal.
According to Amit Pabari, MD, CR Forex Advisors, the rupee remains around the 84 mark, a trend largely driven by the strong dollar index during October.
“Given the light data schedule and Diwali festivities, trading volumes are likely to remain low this week. However, the rupee is expected to remain under pressure until FII outflows ease given the high valuations in Indian equities,” Pabari said. The reason is.”
He said with negative support from RBI reserves, the USD-INR pair is expected to trade in a narrow range of 83.80 to 84.20.
On the domestic equity market front, Sensex rose 209.10 points or 0.26 per cent to 79,611.39. Nifty increased by 13.55 points or 0.06 percent to reach 24,194.35 points.
Foreign Institutional Investor (FII) There were net sellers in the capital market on Friday as they sold shares worth ₹3,036.75 crore, according to exchange data.
Meanwhile, the Reserve Bank on Friday said India’s foreign exchange reserves declined by $2.163 billion to $688.267 billion in the week ended October 18.
The RBI said on Friday that total reserves had declined by $10.746 billion to $690.43 billion in the last reporting week, one of the biggest declines in reserves in recent times.