USD/INR closed at 69.15 against its Opening at 69.24. USD/INR ends down on likely FII inflow into local stock. USD/INR pared losses traded Friday on buying by nationalised banks likely on behalf of the Reserve Bank of India, who intervened in the spot to curtail volatility in the market. PSBs bought dollar likely on behalf of RBI. Also, month-end dollar demand by oil importers further supported the spot.
Over the day, the spot pair may trade in a range of Rs 68.95-69.30/$1 Friday. Local stocks traded higher on positive global cues and steady overseas fund buying local stock continue to boost investor optimism.
Further, firm trend in Asian markets led by hopes of progress in US-China trade talks and global bond yields moving higher after a prolonged slide on worries about the economic outlook, led to perky appetite for risky assets.The 50-share Nifty surged 0.43% to 11,620.10 on the National Stock Exchange.
On the US-China trade talk front, US officials said progress was made in all areas under discussion in the US-China trade talks, with unprecedented movement on the thorny issue of forced technology transfers. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin arrived in Beijing on Thursday for a new round of trade talks with Chinese officials to work out a deal that would end a months-long trade war.
China put proposals on the table in the talks that went further than in the past, including on technology transfer, said one of four senior US administration officials, reports showed. Negotiators made progress on the details of the written agreements that have been talked about addressing US concerns.
However, month-end dollar demand by oil importers will keep a lip on further appreciation in the local currency. Brent crude oil prices edged higher tracking ongoing supply cuts led by producer club OPEC and US sanctions against Iran and Venezuela, which have given crude markets the biggest first quarter price push since 2009.
Meanwhile, the greenback remain supported against other major currencies on increased safe haven demand tracking concerns over global economic slowdown and dovish outlook of major central banks.The dollar index, which tracks the movement of the greenback against a basket of six major currencies traded at 97.17 Friday compared to 97.14 at close of Indian market on Thursday.
Sensex provisionally ends 83 points higher with 20 components in the green.