Rupee opens on flat note against US dollar

The rupee opened on a flat note and was trading in a narrow range against the US dollar in opening session on Friday on sustained demand for the greenback from importers and banks amid weak risk appetite.

At the interbank forex market, the domestic unit opened at 74.63 against the US dollar, then gained ground and touched 74.61 against the American currency. In volatile trade, the local unit also touched 74.67 against the American currency.

On Thursday, the Indian rupee settled at 74.64 against the US dollar.

The rupee started on a flat note against the greenback as “RBI continues to mop up fund inflows and as weak risk appetite could limit appreciation,” Reliance Securities said in a research note.

It further added that the US dollar was flat to marginally weaker as vaccine optimism faded.

“The risk sentiment soured as investors turned their focus back to surging cases, possibility of fresh restrictions and delay in passage of second stimulus in the US,” said Abhishek Goenka, Founder and CEO, IFA Global.

Meanwhile, domestic consumer prices rose 7.61% in October, higher than expectations of 7.3%, primarily on higher food inflation, Goenka said adding that “higher than expected inflation print could dampen sentiment in the bond markets”.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.02% to 92.98.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 60.81 points higher at 43,418.00, and the broader NSE Nifty rose 17.60 points to 12,708.40.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth ₹ 1,514.12 crore on a net basis on Thursday, according to exchange data.

Brent crude futures, the global oil benchmark, fell 1.45% to $ 42.90 per barrel.

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