US dollar & Rupee: Due to the strong greenback in international markets, the Indian rupee fell 2 paise to 83.25 against the US dollar on Friday. Comparing the local unit to its previous close, it opened flat at 83.23 per dollar.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, remained unchanged at 104.35.
The rupee’s closing value against the US dollar on Thursday was 83.23.
Strong domestic equities markets and the US dollar put pressure on the rupee, but the overnight drop in crude oil prices stopped the decline.
With the dollar correcting and crude oil prices declining, the rupee is anticipated to strengthen towards the 83.00 mark. The dollar may be impacted by the US economy’s weaker set of data. As long as USDINR remains below 83.30, it is expected to return to the 83.00 range. In a note, ICICI Direct stated that a move below 83.00 would only pave the way for 82.80.
The world oil benchmark, Brent crude futures, bounced back from losses during the previous day and is now up 0.12% at $77.51 per barrel.
Thursday saw a 5% drop in Brent crude futures for December delivery, hitting a four-month low of $77.42 per barrel as concerns over the world’s oil demand arose from the US’s dismal jobs report.
The equity markets in the country saw no movement. The Nifty 50 increased by 28.55 points, or 0.14%, to 19,793.75, while the Sensex was up 4.39 points, or 0.01%, at 65,986.87.
Exchange data indicates that on Thursday, foreign institutional investors (FIIs) purchased shares valued at ₹957.25 crore, making them net buyers in the capital market.
