The rupee failed to sustain a recovery from its all-time low level and turned flat at 85.04 against the US dollar in early trade on Monday, giving in to the strengthening American currency and unabated outflow of foreign funds.
Forex traders said the rupee stayed weak due to significant dollar demand amid higher crude oil prices triggered by the volatile geopolitical situation, even though a positive sentiment in the domestic equity markets cushioned the local unit at lower level.
They said the dollar index is expected to remain elevated in the near-term amid the fear of delayed interest rate cuts by the US Federal Reserve in 2025.
ADVERTISEMENT
