Daijiworld Media Network – Mumbai
Mumbai, Aug 28: The rupee declined 10 paise to Rs 95.55 against the US dollar in early trade on Friday, weighed down by foreign institutional investor (FII) outflows and continued disruptions in global crude oil supplies.
The domestic currency opened at Rs 95.54 against the US dollar at the interbank foreign exchange market before slipping further to Rs 95.55, compared with Thursday's close of Rs 95.45.
Forex traders said a marginal weakening of the US dollar and a decline in global crude oil prices below USD 90 a barrel limited the rupee's losses.
“The rupee is expected to be in a narrow range of 95.40 to 95.60 on Friday, with the Reserve Bank of India protecting the upper end, while the lower end is bought by oil importers, month-end demand and importers,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Market participants are also keeping a close watch on US Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium for indications on the outlook for US monetary policy.
The dollar index, which measures the greenback's strength against six major currencies, was trading at 99.14, down 0.01 per cent.
Brent crude, the global oil benchmark, fell 0.48 per cent to USD 89.27 a barrel in futures trade.
Meanwhile, domestic equity markets opened higher, with the Sensex gaining 245.56 points to 77,191.80 and the Nifty rising 54.20 points to 24,147.50.
According to exchange data, foreign institutional investors sold equities worth Rs 298.26 crore on a net basis on Thursday.