Indian rupee up 5 paise at 66.86 against US dollar in early trade.

Indian rupee was trading 5 paise up at 66.86 against the US dollar on Friday at the Interbank Foreign Exchange (Forex) market following firm opening at domestic markets amid foreign capital inflows and selling of American currency by banks and exporters. The local currency opened flat at 66.91 against the US dollar and it had closed 8 paise up at 66.91 on Thursday. The BSE Sensex and NSE Nifty opened higher on Friday tracking global cues. The BSE Sensex was trading 227.72 points up at 27,942.09, while NSE Nifty was trading 70.50 points higher at 8,621.60 at 9.32 am.

The Indian currency was hovering in the range of 66.85 and 66.91.

Dollar was trading weak against other emerging market currencies ahaead of US’ crucial employment report, which will be a decisive factor in US Federal Reserve’s interest rates in coming months.

Pound was trading weak after Bank of of England slashed interest rates to 0.25 per cent, hinting that can lower it further if the economy worsens on Brexit concerns.

“Indian rupee would continue to be driven by global markets factors. Fed rate hikes, US elections, next ECB/BOJ actions and their perceived impact, oil price resuming bear market etc. would continue to determine Indian currency’s level. Dollar/Rupee would maintain stability in the range of 66.50 to 68.50 in the short term with a reasonable chance of depreciation towards 70+ levels by this fiscal end,” Srinivas Puni, director, QuantArt Market Solutions.

Source : financialexpress.com