Rupee opens on flat note against US dollar

Photo used for representational purpose

The Indian rupee opened on a flat note and edged lower by 5 paise to 74.12 against the US dollar in opening trade on Friday, amid a lacklustre trend in the domestic equity market.

At the interbank forex market, the domestic unit opened at 74.03 against the US dollar and inched lower to 74.12 against the greenback, registering a fall of 5 paise over its previous close.

On Thursday, the rupee had settled at 74.07 against the American currency.

The domestic unit also touched an early high of 74 per dollar in initial deals.

The rupee started on a flat to weaker note against the greenback, Reliance Securities said in a research note, adding that "improved risk appetite in the markets could cap depreciation bias; however month-end dollar demand from importers could cap the appreciation bias."

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.02 per cent to 90.63.

"The US dollar Index struggled near the nine-week low this morning in Asian trade, continued to be weighed down by a dovish US Fed," the note added.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 369.13 points or 0.74 per cent lower at 49,396.81, and the broader NSE Nifty declined 68.30 points or 0.46 per cent to 14,826.60.

Brent crude futures, the global oil benchmark, fell 0.45 per cent to USD 68.25 per barrel.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 809.37 crore on Thursday, according to exchange data.

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