Rupee falls 8ps to 85.56/$

Mumbai: The rupee pared its initial gains to settle 8paise lower at 85.56 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 inves-tors 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, registering a loss of 8 paise from its previous close. The rupee ended 10paise 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 green-back’s strength against a basket of six currencies, was trading higher by 0.28 per cent at 99.49.