<p>The rupee depreciated by 4 paise to close at 81.34 (provisional) against the US dollar on Friday, tracking a rebound in crude oil prices and sustained foreign fund outflows.</p>.<p>Forex traders said positive macroeconomic data and broad weakness in the American currency supported the rupee and contained the depreciation bias.</p>.<p>At the interbank foreign exchange market, the rupee opened on a weak note at 81.32 against the greenback, but lost ground and fell to an intra-day low of 81.45.</p>.<p>The domestic currency finally settled at 81.34, down 4 paise over its previous close of 81.30.</p>.<p>The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06 per cent lower at 102.18.</p>.<p>Global oil benchmark Brent crude futures rose 0.42 per cent to $84.38 per barrel.</p>.<p>According to Dilip Parmar, Research Analyst, HDFC Securities, the Indian rupee registered the biggest weekly gains after November 11 on the back of better-than-expected economic data and broad-based weakness in the dollar.</p>.<p>Risk assets globally rallied and the safe-haven US dollar slumped after the US inflation readings came lower than expected, Parmar said.</p>.<p>"The near-term outlook for USDINR remains bearish as long as it trades below 82.10 while on the downside, one can see 81.10 and 80.70," Parmar added.</p>.<p>The 30-share BSE Sensex ended 303.15 points or 0.51 per cent higher at 60,261.18, while the broader NSE Nifty advanced 98.40 points or 0.55 per cent to 17,956.60.</p>.<p>Foreign institutional investors (FIIs) turned net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,662.63 crore, according to exchange data.</p>.<p>Meanwhile, on the domestic macroeconomic front, India's industrial production growth rose to a five-month high of 7.1 per cent in November on the back of better showing by manufacturing, according to official data released on Thursday.</p>.<p>Retail inflation declined to a one-year low of 5.72 per cent in December 2022 mainly due to cooling of vegetable prices, according to the data.</p>.<p>Experts believe, with the Consumer Price Index (CPI) remaining below 6 per cent for the second month in a row, the Reserve Bank has some room to pause interest rate hike which has been going on since May last year.</p>
<p>The rupee depreciated by 4 paise to close at 81.34 (provisional) against the US dollar on Friday, tracking a rebound in crude oil prices and sustained foreign fund outflows.</p>.<p>Forex traders said positive macroeconomic data and broad weakness in the American currency supported the rupee and contained the depreciation bias.</p>.<p>At the interbank foreign exchange market, the rupee opened on a weak note at 81.32 against the greenback, but lost ground and fell to an intra-day low of 81.45.</p>.<p>The domestic currency finally settled at 81.34, down 4 paise over its previous close of 81.30.</p>.<p>The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06 per cent lower at 102.18.</p>.<p>Global oil benchmark Brent crude futures rose 0.42 per cent to $84.38 per barrel.</p>.<p>According to Dilip Parmar, Research Analyst, HDFC Securities, the Indian rupee registered the biggest weekly gains after November 11 on the back of better-than-expected economic data and broad-based weakness in the dollar.</p>.<p>Risk assets globally rallied and the safe-haven US dollar slumped after the US inflation readings came lower than expected, Parmar said.</p>.<p>"The near-term outlook for USDINR remains bearish as long as it trades below 82.10 while on the downside, one can see 81.10 and 80.70," Parmar added.</p>.<p>The 30-share BSE Sensex ended 303.15 points or 0.51 per cent higher at 60,261.18, while the broader NSE Nifty advanced 98.40 points or 0.55 per cent to 17,956.60.</p>.<p>Foreign institutional investors (FIIs) turned net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,662.63 crore, according to exchange data.</p>.<p>Meanwhile, on the domestic macroeconomic front, India's industrial production growth rose to a five-month high of 7.1 per cent in November on the back of better showing by manufacturing, according to official data released on Thursday.</p>.<p>Retail inflation declined to a one-year low of 5.72 per cent in December 2022 mainly due to cooling of vegetable prices, according to the data.</p>.<p>Experts believe, with the Consumer Price Index (CPI) remaining below 6 per cent for the second month in a row, the Reserve Bank has some room to pause interest rate hike which has been going on since May last year.</p>