The Indian rupee opened flat at 83.34 against the US dollar on Friday on lack of fresh triggers and muted trend in global markets. While a fall in crude oil pieces supported the rupee, steady dollar demand from local importers weighed on sentiment.
The dollar index, which measures the greenback’s strength against a basket of six currencies, traded 0.10% lower at 103.22. US Treasury yields rose in Asia with the 10-year yield rising to 4.45% and the 2-year yield higher to 4.93%.
On Thursday, the rupee ended 2 paise lower at 83.34 a dollar.
Stock inflows worth about $1.5 billion related to the MSCI index rebalancing effective November 30 could lend more support to the rupee in the coming week.
“Bad moves continue, with 83.3-83.26 becoming a sticky region. We will be looking for a slide below 83.26, to spot a loss of strength, calling for a consolidation within 83.19 – 83.02 again, but the bias seems moderately upward,” said Anand James, Chief Market Strategist at Geojit Financial Services.
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Meanwhile, crude oil prices extended a decline, lending support to the local currency.
Brent decreased 0.02% to $81.40 a barrel, while US West Texas Intermediate crude fell 0.75% to $76.52 a barrel.
On the domestic front, the Indian benchmark equity indices, Sensex and Nifty 50 traded flat in the pre-opening session.
On Thursday, the foreign institutional investors (FIIs) bought Indian stocks in net terms ₹255.53 crore, while Domestic Institutional Investors (DIIs) net bought shares to the tune of ₹457.39 crore, according to provisional data available on the exchanges.
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Updated: 24 Nov 2023, 09:14 IST