Rupee snaps losing streak, rises 5 paise to close at 75.04 against dollar

The rupee snapped its three-day losing streak to close 5 paise higher at 75.04 (provisional) against the US dollar on Friday amid expectation of better dollar inflows from upcoming IPOs.

However, the rebound in the rupee was restricted amid weakness in domestic equities, analysts said.

Forex traders said geopolitical tensions, elevated crude oil prices and hawkish US Fed stance also weighed on the local unit.

At the interbank foreign exchange market, the rupee opened at 75.12 a dollar and witnessed an intra-day high of 74.88 and a low of 75.13.

The domestic unit finally settled at 75.04 (provisional) against the American currency, up 5 paise over its last close of 75.09.

Meanwhile, the US dollar index, which measures the greenback's strength against the basket of six currencies, rose 0.11 per cent to 97.35.

"The Indian rupee managed to stabilise after sharp sell-off in the last three days and retraced from one-month low on expectation of better dollar inflows from upcoming IPOs and position downsizing ahead of the Union Budget," said Dilip Parmar, Research Analyst, HDFC Securities.

However, stronger dollar index, elevated energy price and higher bond yields could push local currency lower in the coming days, Parmar added.

During this week, the local currency has depreciated 61 paise against the US dollar.

Brent crude futures, the global oil benchmark, advanced 0.49 per cent to USD 89.78 per barrel.

On the domestic equity market front, the BSE Sensex ended 76.71 points or 0.13 per cent lower at 57,200.23, while the broader NSE Nifty declined 8.20 points or 0.05 per cent to 17,101.95.

Foreign institutional investors remained net sellers in the capital market on Thursday, as they offloaded shares worth Rs 6,266.75 crore, as per stock exchange data.