After hitting a record low of 68.86 against the US dollar in intraday trade on Thursday, the rupee opened 5 paise higher at 68.67 against the greenback on Friday. Market experts said some selling of American dollars by banks and exporters supported the local currency in opening trade. At 9.23 am, the rupee was trading 6 paise higher at 68.68 against the dollar.
Meanwhile, the domestic equity market opened in the green on Friday following firm Asian cues. The BSE Sensex was trading 64.27 points, or 0.25 per cent, higher at 25,924 in the first hour of trade, while NSE’s Nifty50 was up 32.80 points, or 0.41 per cent, at 7,998.
On Thursday, the rupee opened at 68.76 against the dollar, touched a record low of 68.86 during the day, but closed at 68.72 even after the Reserve Bank of India pumped nearly half a billion dollars to prop it up. The domestic unit had hit its lifetime low of 68.85 on August 28, 2013.
Foreign institutional investors stood net sellers in the domestic equity market on Thursday, as they offloaded shares worth Rs 1,095.10 crore, according to the data available with NSDL. Gross purchases and gross sales of FIIs stood at Rs 4,235.62 crore and Rs 5,330.72 crore, respectively.
Edelweiss Broking said the current weakness in USD-INR would continue over the next few days. The weakness in the domestic currency will largely be contained below the 69.50 to 70 level over the next few weeks before the market normalises.