Rupee weakens to 95.55 against dollar on FII outflows

The rupee opened at 95.54 against the US dollar at the interbank foreign exchange market before weakening further to 95.55 in early trade Friday. The 10 paise decline reflected outflows by foreign institutional investors, though broader support emerged from a marginally weaker US dollar and easing global oil prices.

Forex traders noted that crude oil values remaining below USD 90 per barrel provided cushion for the domestic currency, preventing a more pronounced depreciation. The previous session had seen the rupee settle marginally stronger at 95.45, down just 1 paise from Wednesday's close.

Market analysts expect the rupee to trade in a narrow band of 95.40 to 95.60 during Friday's session. The Reserve Bank of India is anticipated to defend the upper end of this range, while month-end import demand and oil importers' buying at lower levels provide support at the weaker end.

Traders said market participants would continue monitoring global developments closely, with US economic data and crude oil supply dynamics likely to shape currency movements in the coming sessions.