The Indian rupee opened 13 paise higher against the US dollar on Friday after a pullback in the greenback and the US yields. The local currency opened at 83.02 a dollar as against its previous close of 83.15.
The US dollar index, which measures the currency against six developed-market rivals, including the yen and euro, eased 0.14% to 103.26, after touching a two-month high at 103.59 overnight, Reuters reported.
However, the dollar headed for a fifth winning week versus major peers, the longest streak for 15 months.
The 10-year US yield dropped to 4.25%, after hitting a 10-month high of 4.33%.
On Thursday, the Indian rupee slumped 20 paise to end at a record closing low level of 83.15 a dollar.
US July industrial production, retail sales and housing data pointed to a sound beginning to the third quarter. Resilient US economic data has made investors worried that US interest rates are likely to remain high for longer and that policymakers may not be done with hikes, Reuters reported.
Meanwhile, crude oil prices rose. Brent crude futures rose 0.07% to $84.18 a barrel, while US West Texas Intermediate crude (WTI) gained 0.26% to $80.60 a barrel.
On the domestic front, the Indian equity benchmark indices, Sensex and Nifty were trading lower in the pre-opening session.
On Thursday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹1,510.86 crore, while Domestic Institutional Investors (DIIs) net sold shares to the tune of ₹313.97 crore, as per provisional data available on the exchanges.
