The Indian rupee opened 34 paise lower against the US dollar Friday on broader strength in the greenback after better-than-expected US gross domestic product. The local currency opened at 82.27 a dollar as compared to the previous close of 81.93.
The Indian rupee opened 34 paise lower against the US dollar Friday on broader strength in the greenback after better-than-expected US gross domestic product. The local currency opened at 82.27 a dollar as compared to the previous close of 81.93.
Asian currencies traded lower amid the biggest advance in the dollar index since mid-March. The dollar index climbed 0.6% on Thursday, helped the euro’s plunge following the European Central Bank (ECB) outcome.
Asian currencies traded lower amid the biggest advance in the dollar index since mid-March. The dollar index climbed 0.6% on Thursday, helped the euro’s plunge following the European Central Bank (ECB) outcome.
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The European Central Bank (ECB) raised interest rates by 25 basis points to 3.75%, its highest level since 2001.
While in the US, data showed the world’s largest economy grew faster than expected in the April-June quarter this year, with the gross domestic product (GDP) growth at 2.4%, above the 1.8% forecast by economists polled by Reuters.
“Rupee is expected to depreciate today amid strong rebound in dollar. Better than expected US advance GDP numbers and resilient labor market has increased the probability of rate hike scenario in US. Meanwhile, expectation of drop in US Core PCE data could limit the gains the dollar,” ICICI Direct said.
It believes a move above 82.25 would open the doors for the next key resistance at 82.50.
“On the downside 81.80 holds major support to the pair,” it added.
Brent crude fell 0.40% to $83.90 a barrel, while US West Texas Intermediate (WTI) crude declined 0.36% to $79.80 a barrel.
On the domestic front, the Indian benchmark indices, Sensex and Nifty traded lower in the pre-opening session.
On Thursday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹3,979.44 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹2,528.15 crore, as per provisional data available on the exchanges.
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