Mumbai: The rupee on Friday closed 1 paise higher at 83.45 against the US dollar in view of weak US currency and fall in crude oil prices in global markets.
Forex traders said heavy selling in the domestic equity market and withdrawal of foreign funds limited gains in the local currency.
At the interbank foreign exchange, the domestic unit opened at 83.40 and ranged between 83.34 and 83.45 against the greenback during the session.
The local unit finally closed at 83.45 against the dollar, registering a rise of just 1 paise from its previous close.
On Thursday, the rupee had fallen 3 paise to close at 83.46 against the dollar.Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, said the rupee gained on weak US dollar and fall in crude oil prices. However, weak domestic markets and FII outflows capped sharp gains.
The reason for the weak dollar was the decision by the US Federal Reserve to keep the key interest rate unchanged for the sixth consecutive time citing slow progress on the inflation front.
Chaudhary further said that the rupee is expected to trade with a slight negative bias due to weak domestic markets and selling pressure from foreign investors, however, a weak stance and soft US dollar may support the rupee at lower levels.
“Traders may remain cautious ahead of the US non-farm payrolls report and ISM Service PMI data today.Encouraging non-farm payrolls could support the dollar, while disappointing data could weigh on the greenback. USD-INR spot price is expected to trade in the range of Rs 83.20 to Rs 83.60,” he said.
India's manufacturing PMI fell to 58.8 in April 2024 from 59.1 the previous month, a monthly survey said on Thursday.
However, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) recorded the second-fastest improvement in operating conditions in three and a half years, supported by robust demand.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, fell 0.10 percent to 105.07.Global oil benchmark Brent crude futures slipped 0.04 percent to US$83.64 per barrel.
On the domestic equity market front, Sensex fell 732.96 points or 0.98 per cent to 73,878.15 and Nifty fell 172.35 points or 0.76 per cent to 22,475.85.
Foreign institutional investors (FIIs) were net sellers in the capital market on Friday as they sold shares worth Rs 2,391.98 crore on a net basis, according to exchange data.
Forex traders said heavy selling in the domestic equity market and withdrawal of foreign funds limited gains in the local currency.
At the interbank foreign exchange, the domestic unit opened at 83.40 and ranged between 83.34 and 83.45 against the greenback during the session.
The local unit finally closed at 83.45 against the dollar, registering a rise of just 1 paise from its previous close.
On Thursday, the rupee had fallen 3 paise to close at 83.46 against the dollar.Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, said the rupee gained on weak US dollar and fall in crude oil prices. However, weak domestic markets and FII outflows capped sharp gains.
The reason for the weak dollar was the decision by the US Federal Reserve to keep the key interest rate unchanged for the sixth consecutive time citing slow progress on the inflation front.
Chaudhary further said that the rupee is expected to trade with a slight negative bias due to weak domestic markets and selling pressure from foreign investors, however, a weak stance and soft US dollar may support the rupee at lower levels.
“Traders may remain cautious ahead of the US non-farm payrolls report and ISM Service PMI data today.Encouraging non-farm payrolls could support the dollar, while disappointing data could weigh on the greenback. USD-INR spot price is expected to trade in the range of Rs 83.20 to Rs 83.60,” he said.
India's manufacturing PMI fell to 58.8 in April 2024 from 59.1 the previous month, a monthly survey said on Thursday.
However, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) recorded the second-fastest improvement in operating conditions in three and a half years, supported by robust demand.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, fell 0.10 percent to 105.07.Global oil benchmark Brent crude futures slipped 0.04 percent to US$83.64 per barrel.
On the domestic equity market front, Sensex fell 732.96 points or 0.98 per cent to 73,878.15 and Nifty fell 172.35 points or 0.76 per cent to 22,475.85.
Foreign institutional investors (FIIs) were net sellers in the capital market on Friday as they sold shares worth Rs 2,391.98 crore on a net basis, according to exchange data.
