USD/INR closed at 71.22 against its opening at 71.23. USD/INR closed flat at friday on FII outflow from local stocks and oil bids. USD/INR extended gain to Rs 71.45 during intraday trade Friday on buying by nationalised banks for oil importers and foreign banks were likely on behalf of overseas fund outflows from local stocks.
Indian shares pared early gains Friday as optimism over local fund value buying and earnings release was negated by weak global cues.As earnings sessions near its end, currency movement would continue to guide investor participation, particularly the overseas institutional investors.
Crude oil traded higher on expectations that the on-going high level US and China trade discussions might result in the two countries moving closer to reaching a trade deal.Also, reports that the US might extend its deadline for implementing additional tariffs on Chinese goods buoyed the oil prices.Brent crude oil futures surged by 0.39% at $64.82 a barrel on Friday
Meanwhile, the greenback subdued against major peers after weak US retail sales data.The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 97.07 Friday compared to 97.14 at close of Indian market on Thursday.
Economists had expected retail sales to increase by 0.2%, matching the up-tick originally reported for the previous month.Excluding a jump in auto sales, retail sales plunged by an even steeper 1.8% in December after coming in unchanged in November. Ex-auto sales had been expected to edge up by 0.1%.
Sales by gas stations helped lead the way lower amid a drop in gasoline prices, plummeting by 5.1% in December following a 4.4% nosedive in November.A separate Labour Department reported producer prices in the US unexpectedly dropped in the month of January.The Labour Department said its producer price index for final demand slipped by 0.1% for the second straight month in January. Economists had expected the index to rise by 0.1%.
Sensex ended 67 points down in the red, Nifty settles at 10,724.