The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.19 per cent to 104.04. (Representational image)
On Thursday, the rupee had closed at 82.72 against the American currency.
The rupee appreciated by 14 paise to 82.58 (provisional) against the US dollar on Friday, supported by foreign capital inflows and a positive trend in domestic equities.
However, forex traders said higher levels in the US dollar against key crosses overseas limited the upside momentum in the domestic unit.
US President Joe Biden and Republican House Speaker Kevin McCarthy are reportedly close to reaching an agreement on the US debt limit, with the dollar index trading above the 104-level on safe-haven appeal.
At the interbank forex market, the local unit opened at 82.73 against the US dollar and closed at 82.58 (provisional), up 14 paise from its previous close.
During the day, the domestic unit saw a high of 82.56 and a low of 82.73 in the day’s trade.
On Thursday, the rupee had closed at 82.72 against the American currency.
“Indian rupee erases weekly losses amid foreign exchange inflows and recovery in Asian currencies amid rally in domestic equities,” said Dilip Parmar, Research Analyst at HDFC Securities.
Investors are eyeing a possible debt-ceiling deal that could happen on Monday, the weekend before the US holiday.
“The rupee gained momentum on attractive carry trade after the recent RBI pause. MSCI rebalancing is expected to support spot USD/INR around 82.50 amid month end flows, while 82.90 remains the biggest hurdle to overcome,” said Parmar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.19 per cent to 104.04.
Global oil benchmark Brent crude futures rose 0.56 per cent to $76.69 a barrel.
On the domestic equity market front, the 30-share BSE Sensex advanced 629.07 points, or 1.02 per cent, to close at 62,501.69, and the broader NSE Nifty advanced 178.20 points, or 0.97 per cent, to 18,499.35.
Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth Rs 589.10 crore, according to exchange data.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI,
