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Tracking a weak American currency in the overseas market, the rupee strengthened by 5 paise to close at 81.97 (provisional) against the US dollar on April 10.
At the interbank forex market, the local unit opened at 81.90 against the American currency and finally closed at 81.97 (provisional) against the greenback, registering a gain of 5 paise over its previous close.
The rupee touched a high of 81.78 and a low of 81.98 against the dollar during the day.
On Thursday, the rupee had closed at 82.02 against the American currency. Equity and forex markets were closed on April 7 on account of Good Friday.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.02% to 102.06.
Global oil benchmark Brent crude futures rose 0.05% to $85.16 a barrel.
According to Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, below normal monsoon forecast by Skymet and strengthening of the dollar in early Asian trade weighed on the rupee but positive domestic equities limited the fall.
The dollar strengthened as non-farm payrolls, although slightly lower than forecast, indicated a tight labor market. The unemployment rate also decreased from 3.6% to 3.5%. This raised the odds that the Fed could hike interest rates by 25-bps at its FOMC meeting in May, Mr. Chaudhary said.
“We expect the Indian Rupee to trade with a slight downside bias on strengthening US Dollar and positive crude oil prices,” Mr. Chaudhary said. However, positive global markets and fresh FII inflows may support the rupee at lower levels.
Investors can look forward to CPI, Federal Open Market Committee (FOMC) minutes retail sales and industrial production data.
On the domestic equity market front, benchmark indices continued their winning streak for the sixth day, with the 30-share BSE Sensex up 13.54 points, or 0.02%, at 59,846.51 and the broader NSE Nifty advanced 24.90 points, or 0.14%, to 17,624.05. .
Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth ₹475.81 crore, according to exchange data.