MUMBAI: The Indian rupee closed nearly flat on Friday but notched its second consecutive weekly fall as a relief rally following an India-Pakistan truce proved fleeting in the face of sustained dollar demand from local companies and foreign banks.
On the day, outflows related to an equity block deal weighed on the rupee, while broad weakness in the dollar and mild exporter hedging helped keep a lid on the currency’s losses, traders said.
The rupee closed at 85.5050 against the US dollar, nearly unchanegd from its close of 85.55 in the previous session. It declined 0.1% on the week after falling nearly 1% the previous week.
The currency hovered in a 84.6250-85.7225 range over a holiday-shortened trading week which saw the currency markets react to a ceasefire between India and Pakistan, a US-China trade pact, developments in trade negotiations between India and the US alongside choppy price action in the US dollar.
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