Rupee falls 3 paise to open at 82.01 against the US dollar
labour market remained resilient, which increased the probability that the Federal Reserve may deliver a rate hike beyond its July meeting, Reuters reported. The US dollar index rose 0.03% at 100.78 against a basket of currencies. The index is on course for a 1% gain in the week.
On Thursday, the rupee ended 10 paise higher at 81.98 a dollar. “Rupee is expected to depreciate amid rebound in the dollar. The strong labor market in the US has raised the bets that the Federal Reserve will keep interest rates higher for longer to rein inflation.
Meanwhile, upside in the pair could be capped amid expectation of pause in interest rate hike by the Fed after July meeting," said ICICI Direct. USDINR is likely to hold the support near 81.90 and move back towards the higher end of the consolidation range 81.90-82.30, it added. “A move outside the range could bring more clarity in the trend.
Below 81.90 it would slid towards 81.70. Similarly above 82.30 it would rise towards 82.45," it said. Crude oil prices rose, adding pressure on the domestic currency.
Brent futures gained 0.80% to $80.28 a barrel, while US West Texas Intermediate (WTI) crude rose 0.37% to $75.63 a barrel. On the domestic front, the Indian benchmark indices, Sensex and Nifty were trading lower in the pre-opening session. On Thursday, the Foreign institutional investors (FIIs) net bought Indian shares worth ₹3,370.90 crore, while Domestic Institutional Investors (DIIs) net sold shares to the tune of ₹193.02 crore, as per provisional data available on the exchanges.
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