The Indian rupee closed weaker against the U.S. dollar on Friday, after opening strong amid softening of dollar index following the release of key economic data in the US.
The local weakened about four paise to close at Rs 83.29 against the U.S dollar on Friday. It closed at Rs 83.25 on Thursday, according to Bloomberg data.
U.S. jobless claims rose 5,000 to 217,000 last week against estimates of 210,000, according to Bloomberg data.
The dollar index also witnessed a decline after the Federal Open Market Committee decided to hold its key interest rate at 5.25–5.5% in November in a unanimous decision, according to its statement on Wednesday night.
Reliance Securities expected the rupee to start marginally stronger Friday, drawing support from the U.S. dollar's decline on an upbeat risk appetite and a further slide in Treasury yields.
The rupee could open around Rs 83.18–83.19 against the dollar compared with Rs 83.2425 in the previous session, according to it.
The brokerage expects the rupee to trade between Rs 83.1000 and Rs 83.3000 on Friday.
'US Dollar Continues To Be Weighed Down'
Kunal Sodhani, vice president, Shinhan Bank (Global Trading Centre)
"The US dollar continues to be weighed down by an improvement in risk sentiment and a decline in Treasury yields. U.S. initial jobless claims rose to the highest level in seven weeks. Eyes now remain on U.S. NFP data with market expectations of an increase of 180K. For USDINR, 83.10 acts as a support while 83.29 a resistance," Sodhani said.
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