Rupee ends almost flat at 88.70 against US dollar

Mumbai, Oct 31 (PTI) The rupee slipped just one paisa to settle almost flat at 88.70 against the US dollar on Friday, as weak domestic equities and a firm American currency in overseas markets offset the gains from lower crude oil prices.

At the interbank foreign exchange market, the rupee opened at 88.60 and touched a high of 88.59 and a low of 88.78 against the greenback during the session. The local unit finally settled at 88.70, one paisa lower than its previous closing level.

On Thursday, the rupee crashed 47 paise to settle at 88.69 against the US dollar after US Federal Reserve Chair Jerome Powell flagged concerns about inflation staying above the target level and uncertainties in the labour market, trimming hope for a further rate cut in the December policy.

The US Fed, however, reduced interest rates by 25 basis points, in line with expectations.

The rupee saw limited movement as FIIs continued their selling streak over the past few sessions, keeping capital markets under pressure, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.

He further said that the positive dollar index weakened the rupee while crude prices stayed range-bound, offering little relief on the external front.

"The absence of any concrete progress in the US-India trade deal discussions further weighed on sentiment, maintaining a cautious tone for the currency. The rupee is expected to trade within a range of 88.40-89.10 in the near term," Trivedi added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 99.39.

Brent crude, the global oil benchmark, fell 0.68 per cent to USD 64.56 per barrel in futures trading.

On the domestic equity markets front, the Sensex declined 465.75 points or 0.55 per cent to settle at 83,938.71, while the Nifty fell 155.75 points or 0.60 per cent to 25,722.10.

Foreign institutional investors sold equities worth Rs 6,769.34 crore on Friday, according to exchange data. PTI HVA BAL BAL