By laksh5382 
The rupee fell 1 paise to a new low of 84.39 (provisional) against the US dollar on Tuesday as sustained outflows of foreign funds and strengthening of the greenback against major foreign currencies weighed on investor sentiment.
Forex traders said the rupee is likely to trade between 83.80 and 84.50 in the medium term, with the Reserve Bank of India limiting any significant downside due to its strong forex reserves.
The rupee opened at 84.39 against the US dollar in the interbank foreign exchange market. During the session, the local currency touched a high of 84.39 and a low of 84.41. It ultimately closed at 84.40 (provisional), down just 1 paise against the US currency, registering losses for the fifth consecutive session.
The rupee fell 1 paise to a new low of 84.38 against the US dollar on Monday.
In the last five sessions, the local unit has lost 32 paise against the greenback.
He said, “The rupee remained weak as selling in the Indian market by foreign funds continued. However, the fall in crude oil and gold prices provided some relief to the rupee, as the pace of decline slowed down and India will be in a better position in the coming months.” India’s import bill could potentially improve.” Jatin Trivedi, VP Research Analyst – Commodity & Currency, LKP Securities.
Despite this, continued dollar index strength above 105 is expected to remain under pressure on the rupee, limiting any significant correction in the near term.
“With resistance near the 84.25-84.30 area, support is seen at 84.55 on the downside. This week’s focus will be on the US CPI data release, which could impact the dollar’s trajectory. Additionally, US Fed Chairperson Jerome Powell’s The upcoming speech is expected to provide insights “This could lead to a reversal in the value of the dollar, which is currently trading at a four-month high of 105.75,” Trivedi said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 percent higher at 105.60.
Global oil benchmark Brent crude rose 0.60 percent to $72.26 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex fell 820.97 points, or 1.03 percent, to close at 78,675.18, while the Nifty fell 257.85 points, or 1.07 percent, to close at 23,883.45.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth ₹2,306.88 crore, according to exchange data.
Meanwhile, an SBI research report on Monday said the rupee may weaken by 8-10 per cent against the US dollar during the Trump 2.0 regime.
The report titled US Presidential Elections 2024: How Trump 2.0 impacts India and the global economy, emphasizes that the rupee may decline for a short period against the US dollar, after which it may appreciate. .