US Dollar and Rupee: The Indian rupee ended little changed on Friday due to a lack of new triggers, while the central bank’s intermittent dollar sales and a positive trend in domestic equities prevented a drop to a record low. The local currency closed at 83.25 per dollar, down 2 paise from the previous close of 83.23.
The dollar index, which measures the strength of the US currency against a basket of six currencies, was 0.06% lower at 106.54.
The rupee fell 5 paise to 83.23 per dollar on Thursday. The local unit fell 0.1% week on week.
According to analysts, the dollar retreated as US Treasury yields fell from record highs following the release of US GDP data, durable goods sales orders, and home sales numbers that exceeded forecasted growth.
According to Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, the dollar rose on the back of strong US economic data.
“Dollar may strengthen on safe-haven demand on media reports that the US military struck Iranian targets in Syria.”
Nevertheless, an increase in global risk tolerance might provide backing for the rupee at reduced levels. Traders could exercise prudence in anticipation of US data concerning the core PCE price index and personal income. “The USD-INR spot price is expected to trade in the 82.90-83.60 range,” Choudhary added.
Brent crude, the global benchmark for oil prices, increased by 2.14% to $89.81 per barrel.
On the domestic front, the equity benchmark indices snapped a six-session losing streak and ended the day with strong gains amid all-around buying on broadly positive cues.
The Sensex rose 634.65 points, or 1.01%, to 63,782.80, while the Nifty 50 rose 190.00 points, or 1.01%, to 19,047.25.
Based on exchange data, equities worth Rs 7,702.53 crore were offloaded by Foreign Institutional Investors on Thursday.
