Mumbai, Feb 9 (PTI) The rupee depreciated by 11 paise to 83.07 against the US dollar on Friday, tracking a strong American currency and elevated crude oil prices in the international market.
Forex traders said the Indian rupee depreciated as foreign fund outflows weighed on the rupee. However, positive domestic markets cushioned the downside.
At the interbank foreign exchange market, the local unit opened at 82.96 and finally settled at 83.07 against the dollar, down by 11 paise from its previous close.
On Thursday, the rupee settled on a flat note at 82.96 against the US dollar, after the Reserve Bank decided to keep the key policy rate unchanged for the sixth time in a row to maintain a tight vigil on inflation.
“We expect the rupee to trade with a slight negative bias on underlying strength in the US dollar and concerns over rising crude oil prices amid escalating geopolitical tensions in the Middle East,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.
Choudhary further added that a positive tone in domestic markets and mixed to positive global equities may support rupee at lower levels. There are no major economic data over the next couple of days, which may lead to low volatility.
“Investors may now wait for US inflation data on Tuesday. USD-INR spot price is expected to trade in a range of Rs 82.80 to Rs 83.30,” he said.
Dilip Parmar, Research Analyst, HDFC Securities, said “Ahead of the retail inflation data and trade balance number, the rupee is expected to trade between 83.30 to 82.90. The bias and technical setup remain favourable for the rupee with limited upside.” The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.01 per cent down at 104.15.
Brent crude futures, the global oil benchmark, was trading higher by 0.22 per cent to USD 81.81 per barrel.
On the domestic equity market front, Sensex advanced 167.06 points, or 0.23 per cent, to settle at 71,595.49 points. The Nifty fell 64.55 points, or 0.3 per cent, to 21,782.50 points.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchsed shares worth Rs 141.95 crore, according to exchange data.
India’s forex reserves jumped by USD 5.736 billion to USD 622.469 billion for the week ended February 2, the Reserve Bank said on Friday. PTI DRR HVA
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