Mumbai, May 9 (PTI) has overcome its initial loss and settled for 22 money for the day at 22.36 against the US dollar on Friday, as the possible intervention by the Reserve Bank of India helped to include depreciation in addition to Rs.
Forex traders said that the rupee was opened on a weak note due to armed conflict between India and Pakistan, however, the RBI intervened to prevent great weakness.
Interbank went into foreign currency, the domestic unit opened at 85.88 and between the Intra-Day high of 85.32 and against Greenback between 85.88. The unit finished the session at 85.36, registering a profit of 22 money at its previous closing level.
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On Thursday, the rupee saw a decline in more than two-day two and a half years of its biggest day and declined 81.58 at 815.58 against the US dollar on Thursday.
“The Indian rupee weakened on Friday amidst geopic tensions on the border of the Indian rupee. The increase in weakened domestic market and crude oil prices was also weighed at the rupee.
“However, the domestic currency was recovered in the late day by the Reserve Bank of India on the report of improvement in US dollar index with dollars,” Mirae Asset Choudhary – Mirae Asset Choudhary – said the research analyst.
On the night of Wednesday and Thursday’s intervention, India neutralized the Pakistan Army’s effort to hit the military stations at Jammu, Pathankot, Udampur and some other places along with some other places.
The Indian Army said on Friday that Pakistan’s armed forces started several attacks using drones and other sages along the entire western border on the night of May 8-9, which were “effectively repeated”.
Pakistani troops also resorted to “many ceasefire violations” along the line of control in Jammu and Kashmir, the Indian Army said in the morning post on X.
Meanwhile, the dollar index, which detects the strength of greenback against a basket of six currencies, was trading 0.26 percent less at 100.38.
Global oil benchmark, brent crude, increased by 1.80 percent in USD 63.97 per barrel in futures trade.
“We hope that the rupee will trade with a negative bias as geopolitical stress between India and Pakistan can continue weighing the domestic unit. Taking advantage of the rising crude oil prices and risk in domestic markets can put pressure on the rupee.
Chaudhary said, “However, the FII flow can support the rupee on the lower levels. Any de-size of stress in the weekend can also support the rupee on low levels.”
In the domestic equity market, the 30-cheer BSE Sensx declined by 880.34 points or 1.10 percent, closed at 79,454.47, while the Nifty fell 265.80 points or 1.10 percent to 24,008.00.
According to exchange data, foreign institutional investors (FIIs) on Friday discontinued sellers and ups and downs of Rs 3,798.71 crore on a pure basis.
Dilip Parmar, senior research analyst at HDFC Securities, said the local currency was strengthened as traders have adjusted their holdings to navigate potential uncertainties.
“Technically, the USD-InR spot rate 86.25-86.45 faces a significant resistance barriers. The region is marked by the ‘island upward’ interval, which suggests a potential challenge for further praise of the dollar. In addition, 85 levels are estimated to act as a support for a currency pair,” said that said. PTI DRR HVA
This report is auto-generated with PTI News Service. ThePrint does not have any responsibility for its content.