Mumbai, Sep 27 (PTI) The rupee declined 3 paise to settle at 83.69 against the US dollar on Friday amid subdued domestic equity markets and increased month-end demand for the American currency.
However, sliding crude prices in the international market and renewed foreign fund inflows supported the local unit and restricted the fall, forex dealers said.
At the interbank foreign exchange, the local unit opened at 83.64 and moved between the high of 83.62 and the low of 83.71 during the session. The local unit finally settled at 83.69 against the dollar, registering a loss of 3 paise from its previous close.
On Thursday, the rupee declined 8 paise to settle at 83.66 against the American currency.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee weakened against the American currency ahead of key inflation data from the US. However, the softness of the US dollar and the weak tone in crude oil prices supported the rupee at lower levels.
He said the rupee is expected to trade with a slight positive bias amid positive global markets and rising odds of a rate cut by the Federal Reserve.
“Traders may take cues from core PCE (personal consumption expenditure) price index and personal income data from the US. Traders may also watch out for speeches by Fed Chair Jerome Powell and other FOMC members at various forums, Choudhary said, adding, “USD-INR spot price is expected to trade in a range of Rs 83.50 to Rs 83.90.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.06 per cent to 100.30.
Analysts said the market participants were awaiting cues from the personal consumption expenditure data to be released in the US on Friday.
Brent crude, the international benchmark, fell 0.03 per cent to 71.58 in futures trade.
On the domestic equity markets front, the Sensex fell 264.27 points or 0.31 per cent to settle at 85,571.85, while the Nifty declined 37.10 points or 0.14 per cent to 26,178.95.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they sold shares worth Rs 1,209.10 crore, according to exchange data. PTI HVA BAL BAL
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