Mumbai, May 30 (PTI) The rupee pared its initial gains to settle 8 paise lower at 85.56 (provisional) against the US dollar on Friday, as volatility in domestic equities and recovering global crude prices pressured the local currency.
However, a steady inflow of foreign funds supported the domestic unit even as investors stayed cautious, awaiting domestic GDP data to be released later in the day, forex traders said.
At the interbank foreign exchange, the domestic unit opened at 85.35 and moved between the intra-day high of 85.25 and the low of 85.64 against the greenback. The unit settled the day at 85.56 (provisional), registering a loss of 8 paise from its previous close.
The rupee ended 10 paise lower at 85.48 against the dollar on Thursday.
Anuj Choudhary, a Research Analyst at Mirae Asset Sharekhan, said the rupee fell on weak domestic markets and a recovery in crude oil prices. Month-end dollar demand from importers also pressurised the rupee. However, the weak US dollar index and FII inflows cushioned the downside.
“Traders may take cues from core PCE price index and personal income data from the US. USD-INR spot price is expected to trade in a range of Rs 85.30 to Rs 86,” he added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.28 per cent at 99.49.
Analysts said the dollar showed signs of recovery after the US federal court’s ruling against President Donald Trump’s sweeping reciprocal tariffs proved short-lived as a federal appeals court put a temporary stay on the ruling.
Brent crude, the global oil benchmark, rose 0.41 per cent to USD 64.41 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex fell 182.01 points, or 0.22 per cent, to close at 81,451.01, while the Nifty declined 82.90 points, or 0.33 per cent, to 24,750.70.
Foreign institutional investors (FIIs) purchased equities worth Rs 884.03 crore on a net basis on Thursday, according to exchange data.
The Reserve Bank, in its latest annual report on Thursday, said the country is poised to remain the fastest-growing major economy in the world even in FY26.
