Rupee Holds Steady Amidst Market Volatility

The Indian rupee appreciated slightly against the US dollar amidst market volatility. Weak crude prices and Reserve Bank intervention helped stabilize the currency, which faces pressure from strong US dollar, foreign fund outflows, and domestic inflation.

The Indian rupee exhibited minimal appreciation, rising by just 1 paisa to 84.04 against the US dollar on Tuesday amidst a volatile trading session.

Forex traders noted that weak crude prices and potential Reserve Bank intervention provided some relief for the currency, even as it faced significant foreign fund outflows and a negative trend in domestic equities.

The rupee's performance comes against the backdrop of heightened inflation and a robust US dollar, with geopolitical uncertainties further pressuring the currency. Analysts predict continued volatility and a negative bias for the rupee in the near term.

(With inputs from agencies.)