The greenback climbed in the overseas market as the US Federal Reserve raised rates aggressively following surging inflation.
At the interbank foreign exchange market, the local unit opened at 82.77 and touched an intra-day high of 82.70 and a low of 82.82 against the greenback. It finally settled at 82.73, registering a rise of 14 paise over its previous close of 82.87.
On December 31, 2021, the rupee settled at 74.29 against the US dollar.
According to Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, the rupee appreciated on Friday on softness in US Dollar and risk-on sentiments in global markets.
However, a surge in crude oil prices and sustained selling by foreign investors put downside pressure on the rupee. FIIs have remained in the past 5 consecutive sessions. The US Dollar declined on the rise in risk appetite in global markets.
"We expect the rupee to trade with a slight negative bias on expectations of recovery in the US Dollar and recovery in crude oil prices. Concerns over a surge in COVID-19 cases may also put downside pressure on the rupee," Choudhary said.
On the domestic equity market front, the 30-share BSE Sensex declined 293.14 points or 0.48 per cent to end at 60,840.74, while the broader NSE Nifty fell 85.70 points or 0.47 per cent to 18,105.30.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.02 per cent to 103.85.
Global oil benchmark Brent crude futures fell 0.53 per cent to USD 83.02 per barrel.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 572.78 crore, according to exchange data.
SEE ALSO:
Gautam Adani: Man of the year
FPIs return to Indian equities in the second half of 2022, but bond flows are still in the red
Public sector enterprises stage a comeback in 2022 thanks to PSU banks – the future looks healthy, say analysts