Rupee ends 2 paise lower at 83.26 against US dollar; falls for third straight week

The Indian rupee ended 2 paise lower against the US dollar on Friday amid surging crude oil prices overseas and a downward trend in the domestic equities. The local currency ended at 83.26 against previous close of 83.24. 

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07% lower at 106.52.

The rupee posted a weekly loss of 0.1%, marking its third consecutive week of decline.

Forex traders said that positive macroeconomic data failed to rev up the local currency, which has been under pressure due to the elevated level of the dollar and sustained withdrawal of foreign funds.

Analysts said that the dollar index remained elevated above 106 after the US data showed the country's inflation slightly higher than estimated, raising expectations of further interest rate hikes by the US Federal Reserve.

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Meanwhile, India's merchandise trade deficit for September came in lower than expected at $19.37 billion against expectations of $23.25 billion. 

Domestic retail inflation moderated to a three-month low of 5% in September while factory output in August soared to a 14-month high of 10.4%, data showed.

Brent crude futures, the global oil benchmark, rose sharply by 3.77% to $89.24 per barrel.

On the domestic equity market front, the BSE Sensex closed 125.65 points, or 0.19%, lower at 66,282.74, while the broader NSE Nifty declined 42.95 points, or 0.22%, to 19,751.05.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth ₹1,862.57 crore, as per exchange data.

(With inputs from PTI)

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