The rupee on Friday opened marginally lower at 69.39, down two paise against the US dollar amid decline in crude oil prices. The domestic unit on Thursday surged 19 paise to close at 69.37, registering its third consecutive session of gain amid easing crude oil prices and weakening of the greenback against other major currencies overseas.
Forex dealers said selling of the American currency by exporters and sustained foreign fund inflows also propped up the rupee.
On the global front, oil prices slipped on Friday, extending a steep fall from the previous session on surging US output and an expected supply increase from producer club OPEC and putting crude on track for a second week of declines. Both crude futures - Brent and WTI lost almost 3 per cent in value in the previous session.
According to a report by Business Standard, the rupee could end up being the best-performing currency in the region as decline in oil prices and tax collection bolsters the economy. In the past five trading sessions, the rupee has appreciated 1.30 per cent, the sharpest among major currencies in the region. CLICK TO READ FULL REPORT
In the equity markets, Asian shares were subdued on Friday amid thin holiday trade although the dollar found support as investors pared expectations for a US rate cut this year. Back home, the benchmark indices opened flat with positive bias. At 09:30 am, the S&P BSE Sensex was trading 79 points or 0.20 per cent higher at 39,061 while NSE's Nifty50 index was ruling at 11,739, up 14 points or 0.12 per cent.