On Friday, the Indian rupee was trading at 88.69 (provisional) against the US dollar, with the negative performance of domestic equities and a good greenback in the international markets being offset by the positive effect on the currency as a result of falling prices of crude oil.
The domestic currency opened at 88.60 and traded within a small range with a high of 88.59 and low of 88.78 in the session at the interbank foreign exchange market. It closed at the end without making any changes to its previous level of 88.69.
Thursday, the rupee plummeted by 47 paise to close on the same note following the emphasis of US Federal Reserve Chair Jerome Powell that the level of inflation in the US is above the target and that the labour market still faces uncertainty. His comments scuttled the hopes of another reduction in the rate in December, yet the Fed implemented a reduction of 25-basis points, as market predictions predicted.
The dollar index, which gauges the strength of the dollar against six major currencies, increased by 0.04 per cent to 99.39 globally showing intense demand on greenback.
In the commodity, Brent crude futures, the global standard, fell 0.68 per cent to USD 64.56 per barrel, which gave the rupee some relief through the alleviation of the pressure on the import cost.
Equity markets were under pressure at the domestic front. BSE Sensex and NSE Nifty declined by 465.75 points, 0.55 per cent and 155.75 points, 0.60 per cent respectively to close at 83,938.71 and 25,722.10 respectively.
According to stock exchange data, foreign institutional investors (FIIs) remained active in withdrawing funds in Indian equities selling shares of value of Rs 3,077.59 crore on Thursday.
On the whole, the movement of the rupee was range-bound, with conflicting signals of the global and home markets.
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