The rupee traded in a tight range and rose 5 paise to 83.88 against the US dollar in morning trade on Friday, supported by softening crude oil prices and fresh foreign fund inflows.
Forex traders said the significant improvement in oil prices, which are around US$77 per barrel, is a big positive sign for the rupee, given India’s substantial oil imports.
At the interbank forex market, the local unit opened at 83.93 and then gained ground to touch 83.88, registering a rise of 5 paise from its previous close.
Amit Pabari, MD, CR Forex Advisors said that “Despite the dollar index hitting recent lows, the Indian rupee remains stable, showing little signs of strengthening. This resilience can be attributed to the central bank’s deliberate interventions aimed at stabilizing the USDINR around the 83.90-95 range,”.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.15 percent at 101.35 points.
Global oil benchmark Brent crude futures were up 0.12 percent at US$77.31 a barrel, adding, “In the near term, the rupee is expected to trade in a narrow range, with upside around 83.80 and support around 84.00.” Pabari said.
The domestic stock market witnessed heavy volatility in morning trade, with the 30-share BSE Sensex, which opened on a positive note, later trading 13.2 points or 0.02 percent lower at 81,039.99.
Similar movement was seen in Nifty, it opened with gains but soon lost its gains and was trading at 24,803.25, down 8.25 points or 0.03 percent.
