The Indian rupee ended 5 paise higher against the US dollar on Friday softness in US treasury yields and a retreat in the greenback from two-month highs. The local currency ended at 83.10 a dollar as against its previous close of 83.15.
However, for the week, the rupee declined 0.31%, falling for fourth straight week.
The US dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.11% to 103.46, after touching a two-month high at 103.59 overnight.
On Thursday, the Indian rupee slumped 20 paise to end at a record closing low level of 83.15 a dollar.
Also Read: Rupee trades near record low: why is it falling and what analysts predict for medium-to-long-term
The rupee is expected to remain under pressure amid concerns over US interest rates staying higher for longer, foreign fund outflows and elevated crude oil prices.
“We expect the rupee to trade with a negative bias on risk aversion in global markets and overall strength in the greenback. Recovery in crude oil prices may also weigh on Rupee. However, any intervention by the Reserve Bank of India may support Rupee at lower levels. USDINR spot price is expected to trade in a range of ₹82.80 to ₹83.50,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
Meanwhile, crude oil prices eased, supporting the local currency. Brent crude futures fell 0.19% to $83.96 a barrel, while US West Texas Intermediate crude (WTI) eased 0.09% to $80.32 a barrel.
On the domestic front, the Indian equity benchmark indices ended lower Friday on the backdrop of unfavourable global cues.
The 30-share BSE Sensex fell 202.36 points, or 0.31%, to end at 64,948.66, while the Nifty closed at 19,310.15, down 55.10 points, or 0.28%.
On Thursday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹1,510.86 crore, while Domestic Institutional Investors (DIIs) net sold shares to the tune of ₹313.97 crore, as per provisional data available on the exchanges.
(With inputs from PTI)
