The rupee on Friday reversed some of the earlier gains in the session and closed almost flat against the dollar near a 16-week low as investors looked to the much-awaited US jobs data later for clues on a peak in US interest rates. Kept an eye ,
Bloomberg showed the rupee was changing hands at 81.2513 after opening at 81.1338 as compared to its previous close of 81.2188.
Experts said that beyond the intra-day trading levels, the domestic currency was expected to trade in a narrow range.
Rudra Murthy BV, Head of Research, Vachana Investments BV said, “USD-INR is trading in a broad range of 80.5 to 82.0. This consolidation should continue till inflation stabilizes and the Fed decides to hike interest rates.” Doesn’t decide to slow down the pace.”
Forex traders also said that weak domestic equities and foreign fund outflows weighed on the local unit and restricted the appreciation bias from earlier in the session.
Although the rupee temporarily recovered to 81 against the dollar on Thursday, a spot trader at a bank in Mumbai told Reuters it was not surprising that the currency’s “upward momentum” was facing resistance at that price. Was.
“One can anticipate strong demand for the dollar and multiple support levels between 80.50 and 81.0 levels for the USD/INR pair,” the trader said.
The dollar index began December on the defensive on news that US inflation was slowing and that manufacturing in the world’s largest economy contracted last month. It is currently trading near Thursday’s low of 104.56, its weakest level since August 11.
“The US dollar declined over 5 percent against major 6 peers in November – the worst monthly performance recorded in 12 years. This is largely due to the change in tone of Fed members and the chairman,” said Amit Pabri, CR. Managing Director, Forex Advisors.
“And, since a high of 114.80 in late September, the US dollar index is down 8.70% to trade at its lowest level since mid-August,” he added.
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