Mon Nov 18 04:50:31 UTC 2024: ## Rupee Recovers Ground Against Dollar Despite Headwinds

**Mumbai, November 18, 2024** – The Indian rupee staged a modest recovery on Monday, appreciating by 8 paise to 84.38 against the US dollar in early trade. This gain comes despite a stronger dollar index and continued foreign fund outflows. Lower global crude oil prices are credited with supporting the rupee’s rebound.

The rupee opened at 84.42 and climbed to 84.38, surpassing its previous close of 84.46. Thursday saw the rupee hit a record low of 84.46 against the dollar before forex markets were closed Friday for Guru Nanak Jayanti.

While the dollar index rose 0.06% to 106.68, Brent crude oil prices increased by 0.51% to $71.40 per barrel. Analysts attribute the pressure on the rupee partly to India’s rising inflation, with wholesale price inflation reaching a four-month high of 2.36% in October, and retail inflation hitting a 14-month high of 6.21%. The record surge in US Treasury yields also bolsters the dollar.

Despite these challenges, India’s merchandise exports saw a significant 17.25% year-on-year increase in October, reaching $39.2 billion – the highest in over two years. However, the trade deficit widened to $27.14 billion. Foreign Institutional Investors (FIIs) remained net sellers, offloading shares worth Rs 1,849.87 crore on Thursday. India’s forex reserves also declined by $6.477 billion to $675.653 billion in the week ending November 8. Domestic equity markets showed a slight dip, with the Sensex and Nifty declining marginally.

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