The rupee on Friday opened almost flat 71.75 against the US dollar NSE 0.07 %. The local currency on Thursday settled 5 paise higher at 71.76 against the greenback on robust foreign fund inflows.
Rupee consolidated for the whole week in a narrow range of 71.70 and 72.20 despite volatility in domestic and global equities. Weaker-than-expected IIP and inflation released at the start of the week did disturb the broader sentiment but at the same time broader weakness in the dollar kept the losses capped for the currency.
On the domestic front, market participants will be shifting focus on the Q2 GDP number that will be released next week. Weaker-than-expected growth number could keep the rupee under pressure.
"Today, USDINR pair is expected to quote in the range of 71.70 and 72.20,” Motilal Oswal Financial Services NSE 0.34 % said in a report
Dollar gained after remaining under pressure in the last few sessions after Philly Fed manufacturing Index in November rose to 10.4 compared to 5.6 in the previous month. On the other hand, Euro was weighed down ECB meeting minutes showed that Mario Draghi signed off with a call for unity on its main aim of boosting inflation, even as some policymakers pleaded for a “wait and see” approach.
Today, from the Euro zone, preliminary manufacturing and services PMI number will be released and better-than-expected number could keep the currency supported at lower levels.
Source: economictimes.indiatimes.com