Rupee Gains 1 Paisa to 84.10 Amid US Election Poll Trends and Market Recovery
Rupee Gains 1 Paisa to 84.10 Amid US Election Poll Trends and Market Recovery
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The Indian rupee gained some ground on Tuesday, closing at 84.10 against the US dollar, up by 1 paisa from its previous value. This slight recovery comes after the currency hit an all-time low recently, bolstered by a resurgence in domestic markets and what appeared to be intervention by the Reserve Bank of India (RBI).

Forex traders noted that investor sentiment was cautious as the US presidential election approaches. There is an expectation of increased market volatility in the days ahead, particularly with the Federal Reserve set to announce its monetary policy later this week.

As analysts monitor trends related to the US elections, the rupee may face challenges due to potential foreign institutional investor (FII) outflows and a strong US dollar. Additionally, high crude oil prices could further pressure the rupee. Nevertheless, the recovery in domestic markets and possible RBI interventions have provided some support for the rupee at lower levels.

Choudhary, a market analyst, commented on the situation: "We might witness some volatility as we approach the US presidential election results. Traders will likely look for insights from the trade balance and the ISM services PMI from the US, along with the outcomes from the upcoming FOMC meeting. The USD/INR spot price is projected to trade within a range of 83.95 to 84.30."

In related market movements, the dollar index, which measures the strength of the US dollar against a basket of six currencies, was down 0.13% at 103.73.

On the global front, Brent crude oil prices increased by 0.63%, reaching USD 75.55 per barrel in futures trading.

In the domestic equity market, the 30-share BSE Sensex saw a significant increase, rising 694.39 points, or 0.88%, to finish at 79,476.63. The Nifty index also gained, climbing 217.95 points, or 0.91%, to close at 24,213.30.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday, selling shares worth Rs 4,329.79 crore, as reported by exchange data.

In a positive development, India’s manufacturing sector showed signs of recovery, rebounding from an eight-month low in September. A recent monthly survey indicated that the sector grew to 57.5 in October, driven by an increase in both new orders and international sales.

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