Rupee at fresh 3-week low against dollar on rising crude oil prices

The rupee depreciated by 4 paise to close at a fresh three-week low of 71.35 against the US dollar on Friday, continuing its losing streak for the sixth day in a row amid crude oil prices hitting three-month high levels.

Forex traders said the USD/INR spot has been trading in a tight range amid lack of cues.

The rupee opened higher at 71.26 and touched a high of 71.19 in morning trade. Later, it lost ground and fell to a low of 71.40 before closing at 71.35, the lowest level since December 4.

On a weekly basis, the rupee depreciated by 19 paise.

Crude oil prices rose to three-month high levels on positive US and Chinese economic data.

Brent futures gained 0.22 per cent to trade at USD 68.07 per barrel while the West Texas Intermediate was up 24 cents, or 0.4%, at USD 61.92 a barrel.

"The USD/INR spot has been trading in a tight range of 71-71.40 amid holiday season, and we expect thin and lackluster movement to continue even next week," said Rahul Gupta, Head of Research- Currency , Emkay Global Financial Services.

Gupta further said that "the positive sentiments regarding US-China Phase-One trade deal will go on until there is any contradictory news from the US. 71 will continue to act as a strong support, while 71.40 will be a strong resistance."