Despite favorable domestic macroeconomic statistics, the rupee traded flat at 83.24 against the US dollar in early trade on Friday. This was due to the rising trend in crude oil prices. According to currency analysts, the ongoing flight of foreign funds amid weak Asian equities markets has put pressure on the Indian rupee. The rupee’s value against the dollar at the interbank foreign exchange started out at 83.25 and fluctuated just slightly between 83.23 and 83.25. Later, it became flat at the 83.24-to-the-dollar closing level on Thursday.
One day after strengthening by 3 paise versus the US dollar, the rupee ended the day 7 paise higher on Wednesday. India’s manufacturing output surged to a 14-month high of 10.4% in August, while retail inflation cooled to a three-month low of 5% in September, according to official statistics released on Thursday.
The US preliminary consumer confidence index will be the main focus today, and the dollar may continue to rise if the data exceeds expectations. The USD-INR(Spot) is predicted to trade sideways and quote between 83.05 and 83.40.
The benchmark for global oil, Brent crude futures, increased by 0.58% to USD 86.50 a barrel. In terms of the local equities market, the BSE Sensex fell to 66,102.17, a loss of 306.22 points, or 0.46 percent. To 19,720.40, the whole NSE Nifty fell 73.60 points, or 0.37 percent. According to exchange statistics, Foreign Institutional Investors (FIIs) sold shares worth Rs.1,862.57 crore on Thursday, making them net sellers in the capital market.
