The rupee fell 17 paise to 74.75 against the US dollar in Friday’s trade amid weakness in other Asian currencies.
Traders said the domestic unit is trading on a weak note as investors believe the central bank’s bond buying scheme could cause a slowdown for the currency due to inflation concerns.
In the interbank foreign exchange market, the domestic unit closed at 74.75 against the US dollar, a decline of 17 paise over the previous close.
The rupee had closed at 74.58 against the US currency on Thursday.
Meanwhile, the dollar index, which estimates the strength of the greenback against a basket of six currencies, rose 0.09 percent to 92.13.
The quantitative easing (QE) program of the Indian central bank may raise inflation worries and the rupee may appreciate, the Reliance Securities said in a research note, to curb volatility on the Reserve Bank of India (RBI) this Thursday. May be present and loss of cap.
Meanwhile, Asian currencies were mostly weaker this Thursday and could benefit for the local unit, the note added.
On the domestic equity market front, the 30-share BSE benchmark Sensex rose 96.27 points to trade at 49,842.48, and the broader NSE Nifty rose 23.45 points to 14,897.25.
Foreign institutional investors were net buyers in the capital market on Thursday and bought shares worth ₹ 110.85 crore, according to exchange data.
Brent crude futures, the global oil benchmark, plunged 0.09% to $ 63.14 a barrel.
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