The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.22% to 93.55.
The rupee on Friday closed 4 paise higher at 74.88 (provisional) against the US dollar despite volatility in domestic equities, as IPO-related inflows and some fall in crude oil prices supported the local unit.
In the interbank forex market, the domestic unit opened at 74.78 against the greenback and saw intra-day highs of 74.74 and low of 74.98 during the day’s trade. It finally closed at $74.88 per dollar.
On Thursday, the rupee had closed at 74.92 against the US currency.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.22% to 93.55.
Dilip Parmar, Research Analyst, HDFC Securities said, “The week was relatively calm despite the volatility in the domestic equity market, although the rupee depreciated sharply in crude oil and dollar index.”
“With multiple IPOs in the coming weeks, the dollar supply looks huge, but at the same time, weakness in equities could limit price action within a range,” Mr Parmar said.
Capped on the downside as well as the upside, the market is moving towards the holiday week.
“From the level front, spot USDINR is likely to consolidate in the range of 74.70 to 75.20,” Mr Parmar said.
Global oil benchmark Brent crude futures rose 0.21% to $84.50 a barrel.
Foreign institutional investors were net sellers in the capital markets on Thursday as they sold shares worth Rs 3,818.51 crore, according to exchange data.
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