Rupee depreciates 16 paise to end at 83.19 against the US dollar
- The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.19% to 105.20, but still near six-month peak of 105.43 hit in the previous session.
The Indian rupee depreciated 16 paise against the US dollar on Friday dragged by a stronger greenback overseas and rising crude oil prices. The local currency ended at 83.19 a dollar as against previous close of 83.03.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.19% to 105.20, but still near six-month peak of 105.43 hit in the previous session.
On Thursday, the rupee ended at 83.03 a dollar.
“The Indian rupee traded in the narrow range amid dollar inflows from the FTSE rebalancing while the nationalised bank bought the dollar on behalf of oil importers,” said Dilip Parmar, Research Analyst, HDFC Securities.
Spot USD/INR is expected to consolidate between 82.70 to 83.15 before next week’s three major central banks' - Federal Open Market Committee (FOMC), Bank of England (BoE) and Bank of Japan (BoJ) - policy decisions.
“The dovish ECB hike and another round of strong US activity data sent the dollar index (DXY) on another rally above 105,” Parmar said.
He further added that the dollar may correct a bit lower in the near term, but the risks remain skewed towards further strengthening, or at least until the US activity picture starts to show some cracks.
Meanwhile, crude oil prices rallied, pressurizing the local currency.
Brent crude futures rose 0.27% to $93.95, while the US West Texas Intermediate crude (WTI) gained 0.34% at $90.47.
On the domestic front, the Indian benchmark equity indices hit record high levels on Friday led by gains in banking, auto and IT heavyweights amid positive global cues.
Sensex closed 319.63 points, or 0.47%, higher at 67,838.63, while the Nifty settled at 20,192.35, up 89.25 points, or 0.44%. Both the indices ended at their fresh closing highs.
On Wednesday, the Foreign institutional investors (FIIs) net bought Indian shares worth ₹294.69 crore, while Domestic Institutional Investors (DIIs) net sold shares to the tune of ₹50.80 crore, as per provisional data available on the exchanges.
(With inputs from PTI)
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