Rupee Closes Weaker Against Dollar

The Indian rupee closed weaker on Friday, reversing its early gains.

The local currency weakened by 15 paise to close at 83.46 against the greenback, according to Bloomberg data. It had closed at 83.31 on Thursday.

During the day, the Reserve Bank of India rejected bids at the gilt auction for the first time since Sept. 23, 2022.

The Indian rupee fell to its weak low after constant month-end buying, as foreign institutional investors took it lower towards 83.48 before the release of the crucial election polls and results. Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP. "Dollar buying took the sheen away from the rupee, which traded in a band of 83.23 to 83.4850 during the day."

With the election results looming large over the markets, equities have fallen, and so has the rupee, which is almost at its near-term low, Bhansali said. "Monday, expect the rupee to be in the range of 83.30 to 83.50."

The US 10-year Treasury bond yields eased to 4.56% as the growth in the gross domestic product came at 1.3%, a downward projection against market expectations of 1.6%.