The Indian rupee opened flat against the US dollar on Thursday at 84.74, after closing at 84.73 the previous day.

The rupee had reached its lowest point in recent trading when it fell to 84.74 on Wednesday, marking a continued weakening trend. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, attribute this decline to persistent dollar buying, particularly due to defense-related deals that added pressure on the domestic currency. The rupee had initially gained to 83.64 earlier in the day before resuming its downward trajectory.

He indicated that the rupee could weaken further, with an expected range for the day between 84.60 and 84.80. The buying pressure on the dollar is expected to persist, and we could see the rupee falling to 84.80 if this continues, Bhansali added. He also mentioned that the Reserve Bank of India (RBI) could intervene in the market by selling dollars to stabilise the currency.

The rupee’s depreciation comes at a time when India’s economic growth has slowed. The country’s Gross Domestic Product (GDP) grew at a rate of 5.4% in the July-September quarter, down from 6.7% in the previous quarter, indicating a weaker economic outlook. This slowdown has prompted market participants to closely watch the RBI’s monetary policy committee meeting, which started on Wednesday and will run through Friday. The committee is expected to discuss key policy rates amid the country’s economic challenges.

Meanwhile, in global markets, the Dollar Index resumed its upward movement after former U.S. President Donald Trump called for a commitment from BRICS nations not to create a new currency or endorse any alternative to the dollar. This demand has added support to the US dollar’s strength in the global market, contributing to the rupee’s struggles.

On a positive note, India has seen a rebound in foreign investment, with overseas investors turning net buyers of Indian equities after three consecutive sessions of selling. In November, foreign investors bought stocks worth more than Rs 21,600 crore, as per data from the National Securities Depository Ltd.

. Read more on Markets by NDTV Profit.The rupee had reached its lowest point in recent trading when it fell to 84.74 on Wednesday.  Read MoreMarkets, Notifications 

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