By laksh5382 
Rupee Trade was seen in a tight range and it rose 1 paise to 84.04 (provisional) against the US dollar on Tuesday as weak crude prices and suspected Reserve Bank of India intervention supported the local currency at lower levels.
Forex traders said heavy outflows of foreign funds, negative trend in domestic equities and overall strength of the US currency in the overseas market kept the rupee under pressure.
At the interbank foreign exchange, the rupee opened at 84.06 against the greenback and traded in a narrow range of 84.03 and 84.07. The unit closed for the day at 84.04 (provisional), registering a rise of only 1 paise compared to its previous close.
On Monday, the rupee recovered from its all-time low and closed 5 paise higher at 84.05 against the US dollar.
“The Indian rupee is at all-time low due to a stronger dollar and weaker Asian currencies. A weak trend in domestic equities and rise in inflation also weighed on the rupee,” said Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas.
On the domestic macroeconomic front, rising vegetable prices pushed retail inflation to a nine-month high of 5.49 per cent in September, according to government data released on Monday.
Consumer Price Index (CPI) based retail inflation stood at 3.65 per cent in August and 5.02 per cent in September 2023. The previous higher inflation rate was seen at 5.69 percent in December 2023.
“We expect the rupee to trade with a downside bias due to FII outflows and risk aversion in global markets amid geopolitical uncertainty in West Asia. The overall strength in the US dollar may put further pressure on the rupee,” Choudhary said. “
However, weak crude oil prices may support the rupee at lower levels. Any intervention by RBI may also support the local currency. Choudhary said, traders can take cues from America’s Empire State Manufacturing Index data.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.18 percent lower at 103.11.
Global oil benchmark Brent crude fell 5.10 percent to $73.51 a barrel.
On the domestic equity market front, Sensex closed 152.93 points or 0.19 per cent higher at 81,820.12. Nifty closed at 25,057.35 points, up 70.60 points or 0.28 percent.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth ₹3,731.59 crore, according to exchange data.