Early on Friday, despite significant losses in the domestic equity markets and rising crude oil prices, the Indian rupee was trading flat against the dollar.
A lower U.S. dollar relative to other major currencies and forex inflows helped the mood, but concerns about a recession following U.S. jobs figures hurt the local currency, said forex dealers.
The rupee began at 82.81 on the interbank foreign currency market, down 2 paise from its previous finish of 82.79. The local unit moved in a narrow range of 82.82 and 82.77 in morning session, by trading flat at 82.79 against the U.S. dollar. The dollar index, which measures the value of the dollar relative to a basket of six different currencies, fell 0.10 percent to 104.33.
On the assumption that Russian petroleum exports from the Baltic region will decline in December, Brent crude, the pricing benchmark for global trade, increased 0.89 percent to $81.70 per barrel.
Benchmark indices Sensex and Nifty declined nearly 1 percent in early trade in line with weak Asian markets. BSE Sensex tumbled 620.66 points to 60,205.56 while NSE Nifty declined 158.55 points to 17,968.80.
Better-than-expected U.S. statistics fueled expectations that the U.S. Federal Reserve will continue raising interest rates in the New Year, which led to a fall in Asian markets on Friday. While jobless claims were lower than anticipated last week, revised data revealed that the US economy expanded far more than initially estimated from July to September.
According to exchange data, foreign institutional investors (FIIs) changed from being net sellers to buyers on Thursday by purchasing shares worth 928.63 crore.
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