The rupee pared its initial losses to settle 4 paise higher at 82.02 (provisional) against the US dollar on Friday, tracking the weakness of the American currency in the overseas market.
At the interbank foreign exchange market, the local unit opened at 82.12 against the American currency and finally closed at 82.02 (provisional) against the greenback, registering a gain of 4 paise over its previous close of 82.06.
During the session, the rupee touched a high of 81.99 and a low of 82.14 against the dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.08 per cent to 105.22.
Global oil benchmark Brent crude futures declined 0.59 per cent to USD 81.11 per barrel.
“The Indian rupee
The dollar slipped from the three-month high on weak US markets and disappointing weekly jobless claims data, which rose to 2,11,000 from 1,90,000 in the previous week.
“We expect the rupee to trade with a negative bias on risk aversion in global markets and selling pressure from FIIs. However, weak greenback, declining US Treasury yields and a fall in crude oil prices may cushion the downside,” Choudhary said.
Traders may remain cautious ahead of non-farm payroll, average hourly earnings and unemployment rate data from the US. Traders may also watch out for India’s industrial production data, which is likely to be better than the previous month, Choudhary said.
On the domestic equity market front, the 30-share BSE
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 561.78 crore, according to exchange data.