The rupee edged higher against the US dollar on Friday amid a volatile session.
After opening marginally higher against the greenback, the rupee dipped to72.65 but recovered from those levels before settling 11 paise higher at 72.48 for the day.
With that, the rupee closed the month with a loss of 2.1 per cent.
The government announced a reduction of Rs 70,000 crore in the gross borrowing estimate for the current fiscal year.
This, along with the selling of dollar by exporters, provided some support to the currency towards the end of the session.
The gain,however, was limited on the back of a rise in crude oil prices and a strengthening dollar overseas.The rupee - still down more than 13 per cent so far this year - finished the week 28 paise lower against the American currency.The rupee postedits fifth weekly loss in a row.Here are five things to know about rupee's movement against the US dollar on Friday:1.
Analysts say the rupee is expected to remain under pressure in the near term due to high crude oil prices and strength in the US dollar.2.
Crude oil prices continued to move higher as investors anticipated tightening of supply.
Brent - the international benchmark of crude oil - traded above the $82 a barrel mark, near the four-year high of $82.55 registered earlier this week.
Domestic fuel prices in many cities touched new peaks on Friday, as crude oil and rupee weakness continued to make imports dearer.3.
Thedollar rose against its peers after US reported positive economic data.
Growth in the world's largest economypicked up at its fastest pace in nearly four years, data showed.
Also, durable goods rose 4.5 per cent in August, rebounding from a revised 1.2 per cent drop in the previous month.4.Economic Affairs Secretary SC Garg Friday maintained that the government will contain its fiscal deficit target at 3.3 per cent.
The government had budgeted a gross borrowing programme of Rs.
6.05 lakh crore, which now stands reduced by Rs.
70,000 crore, he said.
Mr Garg also said the government will launch one or two inflation-indexed bond issues in the current fiscal year.5.
Meanwhile, the country's foreign exchange reserves increased by $1.3 billion to $401.79 billion in the week ended September 21 helped by a rise in foreign currency assets, according to Reserve Bank of India data.
In the previous week, forex reserves had risen by $1.21 billion to $400.49 billion.(With agency inputs)