Rupee depreciates by 9 paisas to 81.35 US cents at the close
The dollar index, which measures the value of the dollar relative to a basket of six different currencies, decreased 0.18 percent to 104.53.
admin
On Friday, as a result of sluggish domestic markets and a rise in crude oil prices, the rupee gave up some of its early gains and declined by 9 paise to close at 81.35 (provisional).
Foreign fund withdrawals, according to forex traders, also affected investor mood.
The local unit began trading at 81.11 on the interbank foreign exchange market, but it gave up its gains and closed at 81.35, down 9 paise from its previous close.
The local unit recorded an intraday high of 81.08 and a low of 81.35 during the course of the day. The rupee strengthened by 4 paise on Thursday to end the day at 81.26 against the US dollar.
"The rupee was strengthened by a weak US Dollar index. Sharp gains were however muted by weak domestic markets, a rise in crude oil prices, and FII outflows "the Sharekhan by BNP Paribas research analyst Anuj Choudhary said.
As the US ISM manufacturing PMI dipped into contraction and riskier currencies like the Euro and Pound showed strength, the US dollar fell. As the German trade surplus exceeded street expectations, the euro increased.
"As a result of recent FII outflows and risk aversion on the global markets, we anticipate a slight negative bias in the Rupee's trading. However, a weaker dollar may boost the rupee at lower levels. The US non-farm payroll data, which is expected to show a slower pace of hiring this evening, may also provide market cues "Choudhary continued.
The dollar index, which measures the value of the dollar relative to a basket of six different currencies, decreased 0.18 percent to 104.53.
Brent crude futures, the global standard for crude oil, increased 0.17 percent to USD 87.03 per barrel.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 1,565.93 crore on Thursday, making them net sellers in the capital markets.
The 30-share BSE Sensex dropped 415.69 points or 0.66 percent to close at 62,868.50 on the domestic equity market, while the larger NSE Nifty gained 116.40 points or 0.62 percent to close at 18,696.10.
