USD/INR closed at 72.4900 against its open at 72.70. Dollar closed down Friday as the sharp fall in oil prices offset the impact of strong dollar, while weak local stocks may continue to support the demand for the greenback.
"Rupee is clearly on path of correction aided by fall in crude (now below $71/bbl); early signs of start of FII inflow in debt market, and hopefully a more controlled (US President Donald).
"Weight respect to crude oil market, traders are pricing increased supply from non OPEC and US. Some of our clients linked to oil market are suggesting further fall in crude. Clearly, now, price is a great “solver”. Earlier only solver Saudi decision to increase or decrease supply,"
Oil prices fell nearly 2 percent on Thursday as investors focused on swelling global crude supply, which is increasing more quickly than many had expected.
The market focused on record U.S. crude production and signals from Iraq, Abu Dhabi and Indonesia that output will grow more quickly than expected in 2019. Fears of the potential supply glut dampened a rally early in the session driven by Chinese data that showed record oil imports.
The Sensex fell 0.22 percent to 35,158.55, while theNifty declined 0.12 percent to 10,585.2.