The Indian rupee opened stronger against the U.S. dollar on Friday after the dollar index and Treasury yields eased overnight following the release of weaker-than-expected U.S. economic data.
The local currency appreciated two paise to open at Rs 83.02 against the greenback. It closed at 83.04 on Thursday, according to Bloomberg data.
Reliance Securities expected the rupee to trade between Rs 82.90 and Rs 83.12 on Friday.
“The Indian rupee is expected to trade in a narrow range of Rs 82.95-83.05 as the RBI absorbs all inflows and does not allow much manoeuvring in rates today. With Japan and the UK under technical recession and China unable to come out of its slowing growth, India looks to be in a hotspot for more inflows,” Anil Kumar Bhansali, head of Treasury and executive director at Finrex Treasury Advisors LLP, said.
“January’s U.S. retail sales fell 0.8%, highlighting economic volatility amid poor weather affecting auto and gasoline sales. The Fed’s cautious inflation outlook and lower CPI than forecast weaken the dollar,” Kunal Sodhani, vice president of Shinhan Bank, said.
“For the dollar/rupee, Rs 82.90 will act as a support and Rs 83.10 as a resistance,” he said.
