The Indian rupee opened at 84.39 against the US dollar on Wednesday, remaining near its all-time low of 84.4162. The Reserve Bank of India (RBI) is continuing its efforts to stabilize the currency, with analysts Amit Pabari and Anil Kumar Bhansali suggesting that the central bank is actively supporting the rupee at this level.

On Tuesday, the rupee closed at the same level. Meanwhile, Brent crude prices rose by 0.40% to $72.18 per barrel, and the US dollar index remained strong at 105.94, marking a six-and-a-half-month high. Bhansali noted that the dollar’s strength has been bolstered by changes in US policy expectations following the recent Republican electoral victory, with investors pricing in inflationary pressures from potential tax cuts and higher trade tariffs.

The RBI is expected to continue supporting the rupee around the 84.40 level, though further weakening towards 84.50 is still possible. Foreign portfolio investors (FPIs) have been selling Indian stocks, offloading approximately Rs 3,000 crore on Tuesday, and this trend may persist.

For exporters and importers, Bhansali recommended exporters hold a stop loss at 84.25, while importers could consider buying on dips, with a projected trading range for the day between 84.30 and 84.50.

Meanwhile, oil prices have been declining, down by nearly 5.5% over the past week, which has provided some relief for the rupee. According to Pabari, lower oil prices benefit India, the world’s second-largest oil importer, by easing pressure on the Current Account Deficit. Furthermore, upcoming MSCI index adjustments and the NTPC IPO could attract capital inflows to support the rupee.

Despite the RBI’s sustained dollar sales, India’s forex reserves have declined for the fifth consecutive week, dropping to $682 billion from a recent peak of $704 billion. Pabari forecasted that the rupee would trade within a range of 83.80 to 84.50, with a potential shift toward the lower end if capital inflows continue to support the currency.