Rupee slips 2ps to 88.65/$

Mumbai: The rupee slipped 2paise to 88.65 (provisional) against the US dollar on Friday amid a strong American currency against major crosses overseas and rising crude oil prices. A weak trend in domestic equity markets also weighed on the domestic currency, forex traders said.

At the interbank foreign exchange, the rupee opened at 88.61 and tumbled to the intraday low of 88.72 against the greenback.

The unit ended the session at 88.65 (provisional), registering a loss of 2paise from its previous closing level. The domestic unit had appreciated 7 paise to close at 88.63 against the dollar on Thursday. The rupee weakened on risk-off sentiments in the global market and a strong US dollar.

Overnight recovery in crude oil prices too pressurised the rupee; however, reports of sale of US dollar by state-run banks cushioned the downside, said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

“We expect the rupee to trade with a slight negative bias on weak global markets amid worries over the weakening US labour market and a strong US dollar.

Importer demand may also weigh on the rupee. However, any further intervention by the RBI may support the rupee at lower levels.

USD-INR spot price is expected to trade in a range of Rs 88.45 to Rs 89,” Choudhary said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.14 per cent to 99.72.