Rupee Gains 3 Paise to 95.42 Against US Dollar as Greenback Weakens

The rupee appreciated 3 paise to close at 95.42 (provisional) against the US dollar on Friday, due to weakness in the greenback against major rivals overseas. According to forex traders, the rupee stayed under pressure due to foreign fund outflows and rising crude oil prices amid geopolitical uncertainties. At the interbank foreign exchange market, the rupee opened at 95.39 and moved in a tight range of 95.38 to 95.44 against the American currency before ending the session at 95.42 (provisional), up 3 paise from its previous close. On Thursday, the rupee closed 12 paise lower at 95.45 against the US dollar. Jateen Trivedi, VP Research Analyst — Commodity and Currency, LKP Securities, said the rupee traded with a weak bias this week, although the overall movement remained largely range-bound. “Crude had surged around 25 per cent during July and continues to remain elevated, keeping the import-cost pressure on the rupee. Meanwhile, the dollar index remained below the 100-mark near 99.50, limiting the rupee’s downside. Technically, the rupee is expected to remain in the 95.10-95.80 range in the near term, with crude and the dollar remaining key directional triggers,” Trivedi said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 per cent lower at 99.78. Brent crude, the global oil benchmark, was trading higher by 0.99 per cent at USD 87.93 per barrel in futures trade. Analysts noted the dollar index retreated after a fall in US Treasury yields and lower inflation data in the US. Oil prices rebounded after easing due to uncertain geopolitical conditions in West Asia, with conflicting statements from the US and Iran over ship transit through the Strait of Hormuz. On the domestic equity market, Sensex fell 70.71 points (0.09%) to 78,009.25, and Nifty dropped 29.25 points (0.12%) to 24,366. Foreign institutional investors offloaded equities worth ₹510.69 crore on Thursday.