The rupee settled at 65.17 against 65.18 at the previous close. The local unit moved in 65.10-65.25 per dollar band intra-day.
The Indian rupee posted a second straight week of decline against the dollar in a holiday-shortened week, on sustained dollar recovery amid bets that the Federal Reserve will accelerate U.S. rate hikes this year. Rupee has been weakening over the last two weeks after the PNB fiasco made importers jittery. Importers with payments due in these two months have no alternative but to buy dollars, keeping dollar demand elevated.
Global Currency
The dollar hit a six-week high on Thursday, supported by what was perceived as an upbeat tone from new Federal Reserve chief Jerome Powell on the U.S. economy, bolstering bets that interest rates will be hiked four times this year in the United States.
Market participants were looking ahead to the second part of Powell's testimony before the Senate Banking Committee due later Thursday.
The euro was also hurt by political uncertainties as Italians are preparing to vote in a national election on Sunday, while the leading political parties in Germany decide on a coalition deal that would secure Angela Merkel a fourth term as chancellor.
Global Markets
Oil fell for a third day on Thursday, trading further below $65 a barrel as rising U.S. inventories, record output and a stronger dollar outweighed high OPEC compliance with its supply-cutting deal.
A U.S. government report on Wednesday showed a larger-than-expected increase in U.S. crude inventories and arise in gasoline stocks. EIA/S U.S. crude output reached a record in November, although it slipped in the last month of 2017.
Gold fell half a percent on Monday, extending losses for a third day after comments from Federal Reserve Chairman Jerome Powell this week shored up expectations for further increases to U.S. interest rates and held the dollar near a five-week peak.
