Rupee Trades Flat Against Dollar Amid Strong Domestic Market

The Indian rupee closed flat at 95.89 against the US dollar on Friday, after initially gaining due to a strong domestic equity market and falling crude oil prices.

Forex traders attributed the stability of the rupee to the decline in crude oil prices below $104 per barrel and easing US bond yields following a 25-basis-point hike by the Federal Reserve.

However, the positive momentum in the Indian economy was offset by a strong American currency, causing the rupee to pare its initial gains.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, noted that traders may take cues from industrial production data in the US and expects the USD-INR spot price to trade within Rs 95.65 to Rs 96.15.