The rupee rose against the dollar on Friday, recouping some losses from the previous session when it fell to a two-week low, tracking the Chinese yuan's mild recovery, a fall in crude prices, and improved global risk sentiment.
According to Bloomberg, the rupee was last trading at 82.6638 per dollar after opening at 82.6013, compared to Thursday's close of 82.8887.
PTI reported that the domestic currency rose 21 paise to 82.67 against the US dollar in early trade.
The rupee fell to its lowest level in about two weeks on Thursday as Treasury yields increased on Federal Reserve Chair Jerome Powell's hawkish remarks on monetary policy dashed any residual hopes of a short-term shift.
There is "nothing additionally major" in terms of cues for the rupee, but the recovery on the yuan and the dip in oil "will provide a bit of help", a Trader at a Mumbai-based bank told Reuters.
"The higher opening for the rupee is more a reflection of reluctance to take on the 83 (per dollar level) than anything else."
The rupee fell to a low of 82.9263 against the greenback on Thursday but reversed to close at 82.89 on the Reserve Bank of India's intervention.
"The dollar buying syndrome was back in the markets after the Fed hiked rates by 75 bps a day earlier and sounded hawkish in its tone," said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.
"The rupee is set to move in the 82.50 to 83.00 range as the RBI continues to sell dollars at 82.90 levels, while importers remain buyers expecting the rupee to touch 83.50 by the end of this month," he added.
Meanwhile, the RBI's Monetary Policy Committee (MPC) met on Thursday to review the bank's report to the government regarding its failure to achieve its inflation targets for three consecutive quarters for the first time since it was established in 2016.
RBI Governor, Shaktikanta Das, had separately stated that the central bank would not immediately make the specifics of its study public as it did not have the authority to do so.
Globally, the dollar index fell as attention turned to the US monthly jobs report, which is due later today and will help determine how the labour market is faring in the face of Fed rate hikes.
During the press conference that followed the Fed's decision to raise interest rates, Jerome Powell repeatedly referred to the solid US labour market.
Asian currencies rose modestly ahead of that US jobs data.
The People's Bank of China's daily fix, which was lower than expected, helped the offshore Chinese yuan increase to 7.3182 to the dollar. During Thursday's Indian trade hours, it fell below 7.35.
What also helped the Indian rupee is the fall in oil prices on demand worries.
Indeed, on concerns about rising US interest rates and new worries regarding China consumption, Brent crude futures dropped overnight to below $95 per barrel.
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