The rupee moved within a narrow range during Thursday’s morning trade, as the positive impact of a weaker dollar index was offset by elevated crude oil prices and continued dollar demand from importers and foreign banks.
According to forex traders, the broad-based weakness in the US dollar—reflected by the DXY index slipping to the 99 level—could provide near-term support for the rupee. However, the narrowing interest rate differential between India and the US is making Indian assets comparatively less attractive to investors.
At the interbank foreign exchange market, the rupee opened at 85.59, registering an intraday high of 85.58 and a low of 85.67 against the US dollar.