Rupee opens flat at 83.34 against the US dollar
The Indian rupee opened flat at 83.34 against the US dollar on Friday amid lack of fresh triggers and a muted trend in global markets. While a drop in crude oil pieces supported the rupee, persistent dollar demand by local importers weighed on sentiment.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.10% lower at 103.22. US Treasury yields rose in Asia with the 10-year yield inching up to 4.45% and the 2-year ticking higher to 4.93%.
On Thursday, the rupee ended 2 paise lower at 83.34 a dollar.
Equity inflows worth about $1.5 billion related to the rebalancing of MSCI index effective from November 30 could provide more support to the rupee in the coming week.
Meanwhile, crude oil prices extended decline, lending support to the local currency.
Brent eased 0.02% to $81.40 a barrel, while US West Texas Intermediate crude fell 0.75% to $76.52 a barrel.
On the domestic front, the Indian benchmark equity indices, Sensex and Nifty 50 were trading flat in the pre-opening session.
On Thursday, the Foreign institutional investors (FIIs) net bought Indian shares worth ₹255.53 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹457.39 crore, as per provisional data available on the exchanges.
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