Rupee inches higher by 4 paise to end at 74.88 against U.S. dollar

The rupee gained 4 paise to close at 74.88 (provisional) against the U.S. dollar on Friday despite volatile domestic equities, as IPO-related inflows and some pullback in crude oil prices supported the local unit.

At the interbank forex market, the domestic unit opened at 74.78 against the greenback and witnessed an intra-day high of 74.74 and a low of 74.98 during the day’s trade. It finally ended at 74.88 a dollar.

On Thursday, the rupee had settled at 74.92 against the U.S. currency.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.22% to 93.55.

“This week remained relatively calmer even after volatile domestic equities, however retreat of crude oil and dollar index from high added tailwind in rupee,” said Dilip Parmar, Research Analyst, HDFC Securities.

“With multiple IPOs lined up in coming weeks, dollar supply looks huge but at the same time, weakness in equities could limit the price action within range,” Mr. Parmar said.

The downside as well as upside remains capped, with the market heading towards a holiday truncated week.

“From the level front, spot USDINR is likely to consolidate in the range of 74.70 to 75.20,” Mr. Parmar said.

Brent crude futures, the global oil benchmark, rose 0.21% to $84.50 per barrel.

Foreign institutional investors were net sellers in the capital market Thursday as they offloaded shares worth ₹3,818.51 crore, as per exchange data.