The rupee gave up its early gains and ended the day two paise weaker against the US dollar at 83.22 (provisional), as rising crude oil prices offset the support from strong domestic equities.
According to forex dealers, a rising trend in domestic stocks limited the downside and maintained the local currency at lower levels. The local currency opened at 83.17 on the interbank foreign exchange market and fell as low as 83.24 versus the U.S. dollar.
It ultimately closed down 2 paise from its previous closing, at 83.22 (provisional) against the dollar. The rupee and the U.S. dollar closed at 83.20 on Friday.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was down 0.10 percent at 104.92 in the meantime. After the US dollar depreciated from its high levels and October’s job growth in the US was less rapid than anticipated, forex traders reported that the rupee increased.
Regarding the local equity market, the Sensex reached 64,958.69 after rising 594.91 points, or 0.92 percent. At 19,411.75, the Nifty increased by 181.15 points, or 0.94 percent.
In the meantime, the Reserve Bank of India said on Friday that during the week ending on October 27, India’s foreign exchange reserves climbed by USD 2.579 billion to USD 586.111 billion.
