Rupee rises 25 paise to 71.33 against US dollar
Mumbai, Jan 31: The Indian rupee on Friday appreciated by 25 paise to end at 71.33 against the US dollar on Friday after the Economic Survey 2019-20 predicted bullish growth figures for the next financial year.
Forex traders said market participants are now awaiting cues from the Union Budget. The are also assessing the economic implications of the coronavirus outbreak.
The Economic Survey 2019-20 tabled in Parliament on Friday pegged GDP growth at 6-6.5 per cent in fiscal year starting April 1, up from 5 per cent in current fiscal.
At the interbank foreign exchange market, the local currency opened at 71.46. During the day, the local unit saw a high of 71.28 and a low of 71.52. The domestic unit finally settled at 71.33, up 25 paise from its previous close.
The rupee had settled at 71.58 against the American currency on Thursday.
Forex traders further said easing crude oil prices supported the local unit.
“Brent crude continued to remain under pressure and trades around five month low. Lower crude is supporting Indian rupee to cap its losses against the dollar,” said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.
Meanwhile, the global crude benchmark Brent futures rose 0.69 per cent to trade at USD 58.69 per barrel.
Crude prices have seen some moderation in the past few sessions over demand slump amid rising coronavirus cases in China and other regions.