Rupee falls 2 paise to 83.27 against US dollar in early trade

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rupee settled at 83.25 against the American currency. Persistent foreign fund outflows also weighed on the local unit, forex traders said. “In October, the USD/INR pair exhibited an unusual trend, with the lowest monthly intraday trading range observed recently.

For most of the month, except for a few sessions, the interbank rate remained close to 83.25, varying just by one or two paise above or below," CR Forex Advisors MD-Amit Pabari said. This apparent stability stands out, given the backdrop of significant global events, such as the Israel-Palestine conflict, a strong US Dollar Index (US DXY), and elevated US 10-year bond yields, among others. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) “It's essential to remember that lower volatility often signals a contrary opinion, indicating the potential for increased volatility in the near future," Pabari added.

Global oil benchmark Brent crude futures eased 0.05% to $87.41 per barrel. Meanwhile, the central government's fiscal deficit touched 39.3% of the full-year target in the first half of the current financial year, slightly higher than 37.3% recorded in the year-ago period. The growth of eight key infrastructure sectors slowed down to a four-month low of 8.1% in September 2023 against 8.3% a year ago, according to the official data released on Tuesday.