Rupee Holds at 95.96 After Intraday Drop
The Indian rupee closed flat at 95.96 against the US dollar on Friday. It recovered from an intraday low of 95.96 after opening higher. Domestic equity strength and foreign inflows limited the decline.
The Indian rupee ended trading at 95.96 per US dollar on Friday. This represented a net loss of 7 paise from the previous close. The currency reversed early gains to finish at the day's low. A strong US dollar and elevated crude oil prices pressured the local unit.
Positive momentum in domestic equity markets capped the losses. Foreign institutional investors added to their holdings. These factors provided support to the rupee during the afternoon session. The currency traded within a narrow range for most of the day.
Intraday Trading Range
The rupee opened at 95.75 against the greenback. It reached an intraday high of 95.71 in the first half of the session. Pressure built later in the day as the dollar strengthened. The currency closed at 95.96, down 7 paise from Thursday's close of 95.89.
Thursday's close had seen a 2 paise gain. This followed a 150 paise decline over the previous seven sessions. Analysts noted that the rupee traded in a range initially. It gave up early gains due to a positive dollar trend.
Market Drivers and Flows
The dollar index rose 0.24 percent to 100.39. This measured the greenback's strength against six major currencies. Brent crude oil prices fell 0.19 percent to $104.60 per barrel. High oil costs remained a headwind for the rupee.
Foreign institutional investors bought net equities worth 599.54 crore rupees. This net inflow supported the currency. The Sensex index fell 19.63 points to 74,294.96. The Nifty 50 index gained 75.80 points to 23,346.40.
Outlook and Analyst Views
Traders will watch US industrial production data for cues. Mirae Asset Sharekhan expects the rupee to trade between 95.65 and 96.15. The firm cited firm domestic markets and crude oil corrections as key factors. The currency is expected to remain range-bound in the near term.
GN auto markets/forex data indicates a stable but pressured environment. The rupee's performance reflects the balance between domestic inflows and global dollar strength. Investors remain cautious ahead of upcoming economic indicators. The 95.96 level serves as a key reference point for traders.
