The rupee opened lower against the greenback on Friday, snapping a 3-day rally, as higher crude oil prices and a firm US dollar weighed on investor sentiment.
At 09:10 AM, the rupee was trading at 69.05 a dollar, down 13 paise from its Thursday’s close of 68.92. The home currency opened at 69.08 and touched a high and a low of 69.02 and 69.08 a dollar, respectively.
The rupee Wednesday had strengthened by 19 paise to 69.11 against the US dollar. In the last three trading sessions, it has appreciated by 75 paise.
According to forex experts, the bias for the rupee remains bullish following foreign fund flows and more flows are lined up by a couple of overseas companies. The foreign institutional investors (FIIs) put in Rs 476.51 crore on a net basis Thursday, provisional data showed.
Globally, the dollar held firm after strong US labor and inflation data soothed concerns about the world’s largest economy.
Data released on Thursday showed first-time filings for U.S. jobless benefits dropped to a 49-1/2-year low last week, pointing to sustained labor market strength. Overall producer prices increased 0.6% in March, the largest rise since October, reported Reuters.
The dollar index against a basket of six major currencies was steady at 97.166 after climbing 0.25 percent the previous day.
In commodity markets, oil prices were firm, supported by ongoing supply cuts led by producer club OPEC and by US sanctions on Iran and Venezuela.
International Brent crude oil futures were at $71.01 per barrel at 0042 GMT, up 18 cents, or 0.3 percent, from their last close.
In debt markets, the yields on the 10-year government bonds were up 0.20 percent to 7.42 percent from its previous close of 7.40 percent. Bond yields and prices move in opposite directions.