Breaking free of its three-day losing streak, the rupee settled for the day higher by 70 paise at 85.25 (provisional) against the US dollar on Friday. On Thursday, the rupee had depreciated 36 paise to close at 85.95 against the US dollar.
Forex traders said the rupee, which had lost 53 paise in the last three trading sessions, settled with significant gains on Friday owing to support by the weakness of the American currency in the overseas market and surge in domestic equities.
However, a slight recovery in crude oil prices and foreign fund outflows capped the appreciation bias in the local unit to some extent.
At the interbank foreign exchange market, the rupee witnessed heavy volatility. It opened at 85.95, touched an intra-day high of 85.11 and a low of 86.10 against the US dollar.
Research Analyst at Mirae Asset Sharekhan, Anuj Choudhary noted that traders may take cues from existing home sales data from the US. “USD-INR spot price is expected to trade in a range of 85 to 85.70,” he said. “However, selling pressure from foreign investors may cap sharp upside movement,” he added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.60 per cent at 99.36, on rise in risk appetite in global markets and strength in riskier currencies. Easing of US treasury yields also pressurised the greenback.
Brent crude, the global oil benchmark, fell 0.22 per cent to USD 64.30 per barrel in futures trade.
Foreign institutional investors (FIIs) offloaded equities worth ₹5,045.36 crore on a net basis on Thursday, according to exchange data.
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