The rupee reversed the previous session’s losses to gain sharply on Friday against a retreating dollar, as a yuan rally on hopes for COVID-19 restrictions to be relaxed boosted Asian currencies.
After opening at 82.60 per dollar, Bloomberg showed the rupee was last changing hands at 82.46, up 43 paise from its previous close of 82.89.
PTI reported that the rupee gained 45 paise to close provisionally at 82.43 against the US dollar.
Asian currencies rallied, reversing this week’s losses due to the Federal Reserve’s stance that US interest rates could peak higher.
“There was some correction in crude oil prices overnight, but the biggest reason for the rupee’s move is the gains in Asian currencies, particularly the yuan,” said Dilip Parmar, research analyst at HDFC Securities.
The domestic currency, too, recouped all of this week’s losses to close little changed for the week.
“The Indian rupee was well bid today as IPO (public issue) inflows and appreciation of the Chinese currency from a low of 6.32 to a high of 6.24 ensured dollar selling. There was a good amount of oil buying at 82.47 per dollar levels, taking the pair back to 82.62 from where a boutique of inflows took the pair back to 82.43,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.
The dollar index, which had soared last night, was down about 0.4 per cent but was still on track to record its finest week in over a month.
Meanwhile, on concerns about rising US interest rates, Brent crude futures dropped to below $95 a barrel overnight.
However, Brent prices were up over 1 per cent on Friday as China’s easing of COVID-19 restrictions was likely to increase demand.
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