Rupee Ends 7ps Lower At 86.71/$

Mumbai: The rupee pared initial gains and settled 7paise lower at 86.71 against the US dollar on Friday, weighed down by sustained foreign fund outflows and a recovery in the American currency index. Forex traders said the Indian rupee declined on Friday on weak domestic markets and a recovery in the US dollar index. However, weak crude oil prices cushioned the downside. At the interbank foreign exchange, the rupee opened on a positive note at 86.50 against the greenback. During the session it pared the gains and fell to an intra-day low of 86.77 before ending the session at 86.71 against the dollar, logging a loss of 7paise from its previous close.

On Thursday, the rupee appreciated 34paise to close at 86.64 against the US dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.22 per cent higher at 106.61. “We expect the rupee to trade with negative bias on the back of weak domestic markets and selling pressure by FIIs. A bounce back in the US dollar pressurised the rupee further. “However, any fresh intervention by the RBI and weak tone in crude oil prices may support the rupee at lower levels,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.