MUMBAI: The Indian rupee ended little changed after hovering in a tight band on Friday, as dollar demand from importers, including local oil companies, eroded the impact of supportive global cues, traders said.
The rupee closed at 83.0150 against the US dollar, marginally stronger compared with its close at 83.0425 in the previous session. The local unit was little changed week-on-week as well.
The dollar index last quoted at 104.3 after slipping 0.4% on Thursday following weaker than expected US retail sales and industrial production data. Asian currencies were mostly rangebound. The dollar index rose 0.2% this week and was on course to log its fifth straight week of gain.
Meanwhile, USD/INR forward premiums ended the week lower with the 1-year implied yield down 3 basis points week-on-week at 1.76%, pressured by a paring of bets on sharp and early rate cuts by the Federal Reserve. Forward premiums will be “relatively dampened” in the near-term as the Fed is likely to proceed carefully on rate cuts, keeping US bond yields elevated, a foreign exchange salesperson at a private bank said.
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