Rupee extends recovery; Upside likely limited by negative equities and firm dollar overseas

The Indian rupee extends recovery although in a tight band on Friday even as dollar stays firm overseas. Negative cues from equities and rising oil prices also add pressure on the local currency but a possible intervention by RBI is keeping the unit supported. INR opened at Rs 88.72 per dollar and hit a high of 88.68 so far during the day. Yesterday, rupee moved in a tight range to settle 7 paise higher at 88.68 against the American currency. The H1-B visa fee hike and surge in crude oil prices also pressured the rupee. Indian shares ended Thursday's session lower amid mixed signals on U.S.-India trade talks and uncertainty about the outlook for U.S. interest rates. The benchmark BSE Sensex dropped 555.95 points, or 0.68 percent, to 81,159.68, extending losses for a fifth straight session on the back of relentless foreign fund flows and ongoing concerns surrounding H-1B visa fee hike. The broader NSE Nifty index fell 166.05 points, or 0.66 percent, to 24,890.85.

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