Mumbai: The Rupee It pared all its early gains to settle 3 paise lower at 81.82 (provisional) against the American currency on Friday amid a stronger greenback overseas.
However, forex traders said a strong sentiment in the domestic equity market limited the rupee’s downside.
At the interbank foreign exchange, the domestic unit opened at 81.77 against the dollar and finally settled at 81.82 (provisional), down 3 paise from its previous close.
During the day, the rupee was seen at a high of 81.72 and a low of 81.85 against the greenback.
On Thursday, the rupee had closed at 81.79 against the American currency.
Meanwhile, the dollar index, which measures the strength of the dollar against six currencies, rose 0.51 per cent to 102.02.
Global oil benchmark Brent crude futures rose 0.45 per cent to $78.72 per barrel.
Rupee continues to strengthen U.S. Dollar and correction in crude oil prices. However, positive domestic equities and FII inflows capped the fall, said Anuj Chowdhary – Research Analyst at Sharekhan by BNP Paribas.
The US dollar strengthened on strong earnings from IT companies and upbeat US inflation data released on Thursday, raising hopes of the hawkish Federal Open Market Committee (FOMC).
“We expect the rupee to move marginally positive on increased risk appetite in global markets and fresh inflow of foreign investors. However, a stronger US dollar may cap a sharp rally in the rupee,” Chowdhury said.
Traders may be cautious ahead India’s fiscal deficit And the core PCE deflator from the US, which is the preferred gauge of inflation used by the US Federal Reserve, said, “We expect the USD/INR spot to trade in the range of 81.30 to 82.20” in the near term, Chowdhary said.
On the domestic equity market front, the 30-share BSE Sensex closed at 61,112.44, up 463.06 points or 0.76 per cent. comprehensive nse smelly The index rose 149.95 points, or 0.84 percent, to 18,065.00.
Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth Rs 1,652.95 crore, according to exchange data.
However, forex traders said a strong sentiment in the domestic equity market limited the rupee’s downside.
At the interbank foreign exchange, the domestic unit opened at 81.77 against the dollar and finally settled at 81.82 (provisional), down 3 paise from its previous close.
During the day, the rupee was seen at a high of 81.72 and a low of 81.85 against the greenback.
On Thursday, the rupee had closed at 81.79 against the American currency.
Meanwhile, the dollar index, which measures the strength of the dollar against six currencies, rose 0.51 per cent to 102.02.
Global oil benchmark Brent crude futures rose 0.45 per cent to $78.72 per barrel.
Rupee continues to strengthen U.S. Dollar and correction in crude oil prices. However, positive domestic equities and FII inflows capped the fall, said Anuj Chowdhary – Research Analyst at Sharekhan by BNP Paribas.
The US dollar strengthened on strong earnings from IT companies and upbeat US inflation data released on Thursday, raising hopes of the hawkish Federal Open Market Committee (FOMC).
“We expect the rupee to move marginally positive on increased risk appetite in global markets and fresh inflow of foreign investors. However, a stronger US dollar may cap a sharp rally in the rupee,” Chowdhury said.
Traders may be cautious ahead India’s fiscal deficit And the core PCE deflator from the US, which is the preferred gauge of inflation used by the US Federal Reserve, said, “We expect the USD/INR spot to trade in the range of 81.30 to 82.20” in the near term, Chowdhary said.
On the domestic equity market front, the 30-share BSE Sensex closed at 61,112.44, up 463.06 points or 0.76 per cent. comprehensive nse smelly The index rose 149.95 points, or 0.84 percent, to 18,065.00.
Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth Rs 1,652.95 crore, according to exchange data.