Rupee Ends Flat vs US Dollar at 88.69

Mumbai, Oct 31 (PTI) The rupee pared intra-day losses to settle flat at 88.69 (provisional) against the American currency on Friday, as weak domestic equities and a firm US dollar in overseas markets offset the gains from lower crude oil prices.

At the interbank foreign exchange market, the rupee opened at 88.60 and touched a high of 88.59 and a low of 88.78 against the greenback during the session. The local unit finally settled at 88.69 (provisional), unchanged from its previous closing level.

On Thursday, the rupee crashed 47 paise to settle at 88.69 against the US dollar after the US Federal Reserve Chair Jerome Powell flagged US inflation staying above the target level and uncertainties in the labour market, trimming hope for a further rate cut in the December policy.

The US Fed, however, reduced interest rates by 25 basis points, in line with expectations.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 99.39.

Brent crude, the global oil benchmark, fell 0.68 per cent to USD 64.56 per barrel in futures trading.

On the domestic equity markets front, the Sensex declined 465.75 points or 0.55 per cent to settle at 83,938.71, while the Nifty fell 155.75 points or 0.60 per cent to 25,722.10.

Foreign institutional investors sold equities worth Rs 3,077.59 crore on Thursday, according to exchange data.