Rupee Ends At Lowest Ever Level Of Rs 83.35 Against The U.S. Dollar

The rupee closed at the lowest ever level against the U.S. dollar on Tuesday as oil importers persistently bought the greenback to take advantage of an intraday fall in crude oil prices.

The Indian currency settled at 83.354 against the U.S. dollar on Tuesday, as against Monday's close of 83.346 against the greenback.

The global oil benchmark, Brent crude oil future for January delivery fell as much as 1% to $81.50 per barrel today, according to Bloomberg data. As of 3:51 p.m, it was trading at $81.58 per barrel.

However, the dollar index hovered around an over two-month low as traders hoped the U.S. Federal Reserve may not raise interest rates, as a fresh set of data points at economic slowdown in the U.S.

Around 30% of Fed fund future traders expect the first rate cut in the world's largest economy as early as March 2024, according to CME FedWatch tool.

The dollar index was down 0.09% down at 103.34, as of 3:53 p.m.

"Markets continue to focus on the Fed monetary policy meeting minutes which is expected to release tomorrow for further cues," said Ritesh Bhanshali, vice president at Mecklai Financial Services Ltd.

"Brent Crude oil was seen trading around the levels of $81.92 per barrel aided by further supply cuts in OPEC+ production, which is expected to be announced in member meeting scheduled early next week."

Moreover, exporters sold the greenback which also provided respite to the rupee, forex traders told BQ Prime.