Continuing its losing streak for the fourth straight session, the rupee declined by one paise against the US dollar on Friday, June 11, to settle at 73.07 amid stronger American currency and rising crude oil prices. At the interbank foreign exchange market, the local unit opened at 72.97 against the dollar amid its previous close of 73.06 and swung in the range of 72.91 to 73.09 during the day. The domestic unit has lost 27 paise in the last four trading sessions.
On a weekly basis, the local unit declined eight paise against the dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.15 per cent to 90.21.
”The stronger inflow into the domestic equity market could limit the upside in the pair for a while and RBI’s continuous spot intervention could limit the downside upto 72.50-70 levels. Overall, we expect that the USDINR pair should trade in the tight range of 72.50-73.20 zone before any big trigger gives a breakout on either side. However, the chances of upper side breakout are higher as RBI’s buy spot, sell forward swap could not allow further downside,” said Amit Pabari, MD, CR forex.