The rupee settled at 73.4550 against 73.2750 at the previous close. The local unit moved in 73.28-73.4650 per dollar band intra-day.
The Indian rupee logged its first weekly decline in three weeks against the dollar, as investors’ appetite for risk assets waned amid sell-off in the global equity markets. However, persistent decline in crude oil prices curbed further losses in the local unit. Although dollar strengthened this week and sustained at elevated levels, the impact of its strength on the rupee was negated due to slump in crude oil prices.
Global Currency
The dollar rose to a 10-week high on Friday as investors waited to see if U.S. economic growth figures do anything to interrupt its months of strength. A recent downturn in stocks and worries about corporate earnings growth has prompted forex investors to buy the yen and Swiss franc, two currencies typically seen as safe havens during downturns.
The euro remained under pressure after European Central Bank President Mario Draghi indicated the central bank could extend its asset purchase program. He said Thursday at the post-decision press conference that accommodation remained necessary. The central bank made no changes to its monetary policy, as expected. EUR/USD inched down 0.02% to 1.1371, its lowest level in nearly two months.
Global Markets
Oil prices dropped more than 1 percent on Friday, heading for a third weekly loss after Saudi Arabia warned of oversupply, while a slump in stock markets and concerns about trade clouded the outlook for fuel demand. U.S. crude CLc1 was 75 cents lower at $66.58, set for a 3.7 percent loss this week.
Gold prices rose on Friday towards the three-month highs hit earlier this week as nervous investors retreated from stock markets and piled into the precious metal seen as a refuge from financial turmoil.
