The Indian rupee opened little changed against the US dollar on Friday amid an easing oil price, even as a widening trade deficit weighed on the local currency. New economic data that alleviated recessionary fears in the US and led to a global market recovery may support the rupee.
The rupee appreciated one paise to open at Rs 83.94 against the US dollar, according to Bloomberg. It had closed at Rs 83.95 on Wednesday.
“The trade deficit on the domestic front has widened to $23.5 billion, driven by a surge in oil imports and slower export growth. While this scenario exerts some pressure on the rupee, the downside appears to be capped at 84.05,” said Amit Pabari, managing director of CR Forex Advisors.
The rupee is expected to trade within a range of Rs 83.80-84.05 against the dollar in the short term, with a bias towards the lower end of the range, he said.
