The rupee ended the trading week lower versus the American greenback, but was still up 2.4 percent on a weekly basis after being boosted by falling oil prices and the Federal Reserve After initially reaching 69 against the US dollar earlier this week, the rupee was trading at 70.1750 as of 14:45 GMT. Vinod Nair, head of research at Geojit Financial Services, told website The Hindu: “Rupee gave up some gains due to volatility in bond yield. “However, fall in oil prices is expected to provide strength to rupee in the near term.”
Most developing world currencies remained under pressure today as the dollar started to recover from one-month lows, with markets in India falling 1 percent.
But emerging currencies were boosted by oil prices, which slid just over 4 percent on Thursday, tumbled to their lowest since the third quarter of 2017 on Friday.
Both Brent and US crude futures reached their lowest in more than a year overnight, but edged higher on Friday on talk that production cuts by OPEC might be larger than first thought.
US crude fell 1 percent to $45.44 a barrel.
Brent fell 2.3 percent to $53.10.
Both benchmarks have fallen more than 30 percent since the beginning of October as crude supply from the Middle East, Russia and the United States has outstripped demand.
At its lowest point this year, the crippled currency nosedived by as much as 14 percent versus USD.
October saw INR crash through the 74-barrier and reached an all-time low of 74.39 against the US dollar.
Meanwhile, the Indian government was reported poised to renew its demand for 131.40 billion Indian rupees in additional dividend from the central bank helmed by newly-appointed governor Shaktikanta Das.
One source told Reuters: ”Even though RBI in 2016-17 used their own formula it had still transferred 131.40 billion rupees less to the government in our view.
“We have been asking that amount to be given to us.”
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