Indian rupee depreciated 9 paise to 79.71 against the U.S. dollar in opening trade on Friday, tracking the strength of the American currency in the overseas market and rising crude oil prices. At the interbank foreign exchange, the rupee opened at 79.67 against the U.S. dollar and lost further ground to 79.71, registering a decline of 9 paise over the last close.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.11 percent to 105.20. Meanwhile, global oil benchmark Brent crude futures declined 0.48 percent to USD 99.12 per barrel, while U.S. crude oil WTI futures fell 0.3% to $94.08 per barrel.
On Thursday, the rupee down by 37 paise to close at 79.62 against the U.S. dollar. According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the Indian rupee depreciated on Thursday, despite a fall in the dollar index and a rise in Asian currencies, amid heavy buying of the U.S. dollar by the government, defense and oil companies.
“The demand may continue on Friday due to holidays in the next week. The range for the day is between 79.40 to 79.80,” Bhansali said, adding that oil prices, however, are floating near USD 100 per barrel, which is a matter of concern for the rupee and current account deficit (CAD).