Weekly Review: Rupee ends the week virtually stable

New Delhi: The rupee ended the week virtually stable at 64.44 against the US dollar after witnessing a bit of roller coaster ride even as equities continued their record- breaking rally.

Trading has been thin and confined to extremely narrow range in the absence of any market moving factors.

Moreover, currency traders preferred to lighten up their positions ahead of RBI policy review next week.

After overcoming early setback in the face of hardening geopolitical jitters and also month-end oil-related dollar demand from importers, the home currency staged a smart rebound toward the tail-end trade.

A spectacular record setting rally in domestic equities alongwith continued optimism of fund inflows against the backdrop of improving macro-economic environment largely weighed on rupee trade during the week, a forex dealer said.

Meanwhile, India's annual economic growth rate unexpectedly slowed to 6.1 percent in the January-March quarter, its lowest in more than two years, while the expansion of eight core sectors declined to 2.5 percent in April.

The rupee resumed higher at 64.48 against last Friday's closing value of 64.44 at the Interbank Foreign Exchange (forex) market.

It later succumbed to heavy selling pressure due to month-end dollar demand and drifted sharply to a low of 64.70.

However, the home currency staged a smart rebound towards the tail-end to hit a high of 64.32 before ending the the week on a steady note at 64.44.

Foreign funds were net sellers and offloaded a net amount of USD 46.26 million, according to provisional figures by stock exchanges.

In worldwide trade, the dollar collapsed to a fresh seven-month lows on Friday after data showed the U.S. Economy created fewer jobs than expected last month, which could derail a possible interest rate hike by the Federal Reserve in the second half of this year.

This is the lowest level since the election of Donald Trump last November.

The currency had been battered by intense political instability fears as the Trump administration looked increasingly mired in a scandal about senior members contact with Russian officials.

The dollar index a measure of the US currency against a basket of six trade-weighted peers dropped sharply to end at 96.61 - the weakest since president Trump's election.

With PTI Inputs