The Indian rupee weakened by 8 paise, settling at 85.56 against the US dollar on Friday, as market volatility and rising crude oil prices exerted pressure on the domestic currency. At the interbank foreign exchange, the rupee opened at 85.35, fluctuating between an intra-day high of 85.25 and a low of 85.64, before closing at 85.56, marking a decline from its previous close.
Weak Domestic Markets: The rupee faced downward pressure due to declining equity indices, with the BSE Sensex falling by 182.01 points and the Nifty dropping by 82.90 points. Month-End Dollar Demand: Increased dollar demand from importers contributed to the depreciation.
Anuj Choudhary, a Research Analyst at Mirae Asset Sharekhan, attributed the rupee’s decline to weak domestic markets and recovering crude oil prices. However, he noted that foreign institutional investor (FII) inflows cushioned the downside.
Traders are expected to monitor US economic data, including the core PCE price index and personal income reports, which could influence the SD-INR exchange rate, projected to trade between ₹85.30 to ₹86 in the near term.
