The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.32 per cent to 103.25.
On Thursday, the rupee had closed at 82.62 against the dollar.
The rupee depreciated 5 paise to close at 82.67 (provisional) against the American currency on Friday, tracking a stronger greenback overseas and a rise in crude oil prices in the international market.
However, a firming trend in the domestic equity market and steady foreign inflows supported the rupee and capped the fall, traders said.
At the interbank foreign exchange, the domestic unit opened at 82.71 against the dollar and finally settled at 82.67 (provisional), down 5 paise from its previous close.
The rupee touched a high of 82.64 and a low of 82.80 against the dollar during the day.
On Thursday, the rupee had closed at 82.62 against the dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.32 per cent to 103.25.
Global oil benchmark Brent crude futures rose 1.05 per cent to $76.66 a barrel.
“The Indian rupee fell to a two-month low on overnight rise in the US dollar and positive crude oil prices. However, late recovery in domestic equities and FII inflows prevented a sharp fall in the rupee,” said Anuj Chowdhary – Research Analyst, Sharekhan by BNP Paribas.
Hawkish statements from US Federal Reserve officials also supported the greenback. There are growing chances that the Fed may continue raising interest rates at its June FOMC meeting to reduce inflation.
“We expect the rupee to trade with a negative bias on a stronger dollar. Optimism and hawkish fedspeak on the debt ceiling deal could continue to support the US dollar.
“However, increase in risk appetite in global markets and inflow of foreign investors may support rupee at lower levels. Investors can keep an eye on Fed Chairman Jerome Powell’s speech. We expect USD/INR spot to trade in the range of 82.30 to 83.30 in the near term.”
On the domestic equity market front, the 30-share BSE Sensex advanced 297.94 points or 0.48 per cent to close at 61,729.68. The broader NSE Nifty fell 73.45 points, or 0.41 per cent, to 18,203.40.
Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth Rs 970.18 crore, according to exchange data.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI,
