Rupee ends losing run on whiff of FPI flows into stocks
The Indian rupee Friday snapped its four-day losing streak to end at 94.21, aided by what traders described as 'mild' foreign investment into local equities
The Indian rupee Friday snapped its four-day losing streak to end at 94.21, aided by what traders described as 'mild' foreign investment into local equities and a slide in the global dollar index.The currency had closed at 94.39 per dollar on Thursday.The dollar index weakened to 100.7, from 101.4 the previous day, as a tepid US jobs report lengthened the odds on a rate increase by the Federal Reserve, keeping Asian currencies stronger."Improved global sentiment and a softer dollar helped the domestic currency recover from recent weakness.
However, traders remain cautious ahead of the weekend as developments in the US-Iran and Russia-Ukraine conflicts could influence global risk appetite when markets reopen on Monday," said Jateen Trivedi, VP currency research analyst at LKP Securities.Data from the Stock Exchange (NSE) showed overseas funds were net buyers worth ₹1,355 crore in the Indian capital markets on Friday.
Local funds were net sellers.The rupee has depreciated 0.4% in the current fiscal year so far. The currency is expected to trade between 95 and 95.50 on Monday.Trading volumes, especially from foreign banks, were
down on Friday as US markets were closed for the 4th of July weekend. Additionally, the softer-than-expected jobs growth might dial down expectations of a near-term rate hike by the US Federal Reserve, traders said.
The BriefWire