The Indian rupee traded flat against the US dollar in early trade on Friday amid a weak American currency and softening crude oil prices. The local currency opened flat at 83.28 a dollar, similar to its previous close.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.04% at 105.86.
On Thursday, the rupee closed 1 paise lower at 83.28 against the American currency.
Forex traders said negative equity market sentiment and selling pressure from foreign investors kept the Indian currency range-bound.
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“Rupee is expected to depreciate amid rise in dollar. The hawkish comments from the US Federal Reserve Chairman Jerome Powell has reinforced the possibility of another rate hike. Meanwhile, focus will shift towards next weeks key US CPI data,” ICICI Direct said in a note.
It expects USDINR to consolidate in between 83.10-83.40.
“Only a move above 83.40 it would open the doors towards 83.50. Similarly below 83.10 it would weaken towards 82.90,” the brokerage said.
Brent crude futures, the global oil benchmark, rose 0.57% to $80.47 per barrel.
In the domestic equity market, the Sensex traded 98.63 points, or 0.15%, lower at 64,733.57, while the Nifty 50 fell 23.70 points, or 0.12%, to 19,371.60
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth ₹1,712.33 crore.
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Updated: 10 Nov 2023, 10:53 AM IST