Rupee falls 2 paise to 83.25 against US dollar in early trade
The Indian rupee traded 2 paise lower at 83.25 against the US dollar on Friday weighed down by a firm greenback in the overseas markets. The local unit opened flat at 83.23 a dollar as compared to its previous close.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was flat at 104.35.
On Thursday, the rupee closed at 83.23 against the greenback.
A firm US dollar and weak domestic equity markets pressurized the rupee, while overnight plunge in crude oil prices restricted the fall.
“Rupee is expected to appreciate towards the 83.00 mark amid correction in the dollar and falling crude oil prices. The weaker set of economic numbers from the US could weigh on the dollar. USDINR is likely to move back towards the 83.00 mark, as long as it stays under 83.30. Only move below 83.00 it would open the doors towards 82.80,” ICICI Direct said in a note.
Brent crude futures, the global oil benchmark, recovered from overnight losses to trade higher by 0.12% at $77.51 per barrel.
Brent crude futures for December delivery plunged up to 5% to a four-month low of $77.42 per barrel on Thursday as weak jobs data from the US led to worries about global oil demand.
On the domestic front, the equity markets traded flat. The Sensex was trading 4.39 points, or 0.01%, higher at 65,986.87, while the Nifty 50 rose 28.55 points, or 0.14%, to 19,793.75.
According to exchange data, foreign institutional investors (FIIs) emerged as net buyers in the capital market on Thursday as they bought shares worth ₹957.25 crore.
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