Rupee snaps 4-day losing streak, gains 21 paise against U.S. Dollar

The rupee snapped a four-day losing streak to close 21 paise higher at 83.02 against the U.S. Dollar on Friday, aided by the currency’s flow into domestic equities and likely supported by intervention from the Reserve Bank of India (RBI)

The Indian currency had hit its lifetime low of 83.23 against the U.S. Dollar on Thursday.
“We suspect it was heavy intervention from the central bank and some corporate inflows that pushed the pair lower,” said Anindya Banerjee, VP – Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd.

“Over the past one week, we think the RBI has been very active in defending the rupee and preventing it from going past the 83.30 mark [intraday].”

“Over the next one week, U.S. CPI and the trend in the Chinese currency will set the tone. We expect a broad range of 82.70 and 83.30 on spot,” he added.

India Forex and Asset Management Private Limited (IFA Global), in a note, said, “The rupee weakness continued this morning and opened at 83.14 amid higher crude and global dollar strength. However, positive sentiments in domestic equities and likely RBI intervention at higher levels helped the INR strengthen in the second half of the session.”