With the US dollar, it ultimately closed at 79.86, up 6 paise from its previous closing of 79.92.
Digital Desk: On Friday, the rupee
strengthened versus the US dollar by 6 paise to settle at 79.86 (provisional),
helped by foreign fund inflows and a bullish trend in local markets.
Forex dealers claimed that the rupee's advance was nevertheless
limited by increased crude prices on global markets.
The local currency's opening price on the interbank forex market
was 79.87 against the US dollar. During the session, it experienced a high of
79.81 and a low of 79.94 against the US dollar.
With the US dollar, it ultimately closed at 79.86, up 6 paise from
its previous closing of 79.92.
The dollar index, which
gauges the strength of the dollar relative to a basket of six different
currencies, fell 0.13 percent to 108.33.
The benchmark for world oil, Brent crude futures, increased 1.42
percent to USD 100.75 a barrel.
Following favourable domestic equity markets and FII inflows, the
currency strengthened. Anuj Choudhary, a research analyst at Sharekhan by BNP
Paribas, claimed that the strong US Dollar and increased crude oil prices
restrained any significant gains.
"Because of the
strong dollar and rising crude oil prices, we anticipate that the rupee would
trade negatively. The rupee may be affected by importers' month-end Dollar
demand. However, the rupee may be supported at lower levels by strong global
stocks and FII inflows " he added.
NRI remittances may also help the rupee. The USD/INR spot market
is anticipated to trade in a band of Rs 79.20 to Rs 80.50 in the upcoming
sessions, according to Choudhary, who also suggested that traders may continue
to be cautious ahead of Fed Chair Jerome Powell's speech at the Jackson Hole
Symposium.
The BSE Sensex closed 59.15 points or 0.10 percent higher at
58,833.87 points on the local equities market, while the larger NSE Nifty
advanced 36.45 points or 0.21 percent to 17,558.90.
According to preliminary
data, foreign institutional investors (FIIs) continued to be net buyers in the
capital markets on Thursday, buying shares worth Rs 369.06 crore.
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