On Friday, the rupee strengthened versus the US dollar by 14 paise to 82.58 (provisional), helped by foreign capital inflows and an uptick in domestic markets. However, the strong US dollar relative to important foreign currencies restrained the home currency’s upward trend, according to FX traders.
Since US President Joe Biden and Republican House Speaker Kevin McCarthy are allegedly close to reaching an agreement on the US debt ceiling, the dollar index is trading above the 104-level on safe-haven appeal.
The local currency’s opening rate on the interbank foreign exchange market was 82.73 against the US dollar, and it ended the day at 82.58 (provisional), up 14 pence from where it had ended the previous day. The domestic currency experienced a daytime high of 82.56 and a daytime low of 82.73. The rupee’s closing price on Thursday was 82.72 US dollars.
The dollar index, which measures how strong the dollar is relative to a basket of six different currencies, decreased 0.19 percent to 104.04. Brent crude futures, the benchmark for all crude oil, increased 0.56 percent to USD 76.69 a barrel.
“The Indian rupee erases weekly losses amid a rally in the domestic equities, followed by foreign fund inflows and recovery in the Asian currencies,” said Dilip Parmar, Research Analyst, HDFC Securities.
