The rupee ended on a flat note at 82.70 (provisional) against the US dollar on Friday as surging crude oil prices dented the investor sentiment.
The domestic currency, however, found support from positive sentiment in equity markets on the back of robust macroeconomic data.
According to a survey released on Friday, manufacturing activities in India gained momentum in August as new orders and output increased at the quickest rates in nearly three years.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose to 58.6 in August from 57.7 in July.
The latest government data released on Thursday showed India recorded GDP growth of 7.8 per cent during the April-June period of 2023-24, the highest in the past four quarters, retaining its position as the world’s fastest-growing major economy.
At the interbank foreign exchange, the domestic unit opened at 82.58 and touched the lowest level of 82.76 during intra-day trade. The Indian currency finally settled flat at Thursday’s closing level of 82.70 (provisional) against the greenback. The American currency stayed firm tracking cues from positive GDP numbers in the US while forex traders awaited employment and manufacturing growth numbers.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said: “We expect rupee to trade with a slight negative bias on rising US dollar and surge in crude oil prices. However, rise in risk appetite in global markets may support rupee at lower levels.