The rupee depreciated by three paise to 82.01 vs the US dollar on Friday. The dollar index — which measures the American currency against the yen, the pound, the Canadian dollar, the Swedish krona, the Swiss franc and the euro — was last trading 0.1 percent lower at 100.5.
Crude oil benchmarks remained steady on Friday. At the last count Brent crude futures were trading 0.8 percent higher at $80.3 per barrel. WTI futures, too, were trading 0.8 percent higher at $76.2 per barrel.
"Following the broader weakness in emerging market currencies, the local unit could also be pressured, but the likelihood of the USDINR staying within its consolidation zone of 81.90-82.20 is relatively higher. However, if the currency pair breaches either side of this range, it could lead to increased volatility in the market," said Amit Pabari of CR Forex.
"On the global front, today, riskier assets might face challenges as the Dollar Index has shown renewed strength due to a decline in US unemployment claims. This development signals that the labor market remains resilient, potentially strengthening the case for another interest rate hike later this year. However, until the resistance of the 100.50-100.80 zone is taken out, the pressure could remain on the downside. As the markets await the FOMC outcome in the upcoming meeting, the momentum in the currencies would be range bound in the absence of higher speculative trades," Pabari added.
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