The Indian rupee closed stronger against the US dollar on Friday, tracking the slight easing in the greenback and likely intervention by the Reserve Bank of India beyond Rs 84 in the previous session.
The local currency appreciated 5 paise to close at 83.90. It opened at an intraday high of 83.86 per dollar, according to Bloomberg data. The rupee had closed at Rs 83.95 on Thursday.
"The Reserve Bank of India likely intervened in the non-deliverable forward market on Thursday to bring the rupee back within the Rs 84 level after it briefly passed the mark," Anil Bhansali, executive director at Finrex Treasury Advisors LLP., said. He expects the domestic currency to trade in a narrow range of Rs 83.85–84.
Exporters may wait and watch for further weakness in the rupee, with a stop loss of Rs 83.75 for hedging, while importers may buy the dollar on dips, according to Bhansali.
The dollar index was down 0.08% at 101.43 at 3:35 p.m. IST, whereas Brent crude oil was up 1.10% at $78.07 per barrel at 3:38 p.m. IST.
"Despite the dollar index reaching a recent low, the Indian rupee remains steadfast, showing little signs of strengthening. This resilience can be attributed to the central bank's deliberate interventions, aimed at stabilising the dollar-rupee around the Rs 83.90–83.95 range," Amit Pabari, managing director of CR Forex Advisors, said.
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