The rupee settled at 71.22 against 71.16 at the previous close. The
local unit moved in 71.20-71.4250 per dollar band intra-day.
The Indian rupee posted its first weekly rise in six weeks against the
dollar, helped by dollar inflows into local markets even as rally in
crude oil prices trimmed most of the weekly gains. The Indian rupee,
which was boosted by flows from a telecom company and
disinvestment-related inflows, reversed most of its gains in the last
three days, despite broad strength in dollar and decline in equities.
Most of the flows were likely absorbed by the central bank and
importers, particularly the oil companies amid rally in crude prices.
Global Currency
The dollar was edging higher against major European currencies
early Friday in Europe after weak Chinese inflation data overnight
reinforced concerns about global growth. Fears about the growth
outlook have revived this week in the wake of a shockingly sharp fall
in U.S. retail sales in December, and there is still not enough
evidence of progress in the trade talks between China and the U.S. to
suggest that risk appetite will return quickly.
The euro was at $1.1278, down 0.2% and seemingly set to test a
three-month low of $1.1218 later. Pound was still struggling below
$1.28 after another parliamentary defeat Thursday – albeit only a
symbolic one, for PM Theresa May over her Brexit strategy.
Global Markets
Gold and the U.S. dollar, both considered as safe-haven assets these
days, gained on Friday in Asia following the release of weak U.S.
retail sales and China inflation data. Gold was up $2.75, or 0.2%, at
$1,316.65 per ounce.
Oil prices rose on Friday in Asia after briefly falling on a weak U.S.
retail sales data report. U.S. retail sales tumbled 1.2% in December,
the first time in 10 months, the Commerce Department reported on
Thursday. Economists had forecasted a gain of 0.1% for the period.
