Rupee strengthens 4 paise against US dollar

At 10.45 am, the rupee was trading 4 paise or 0.06% higher against the US dollar, at 64.89.

The rupee gained 4 paise to trade at 64.89 against the US dollar in morning deals on Friday at the interbank forex market.

On Thursday, the rupee fell by 10 paise to end at 64.93 against the American currency due to sustained foreign fund outflows amid growing prospects of rate hike by the US Fed next week. (Dhiraj Singh/Bloomberg)

However, strength in the US dollar against other currencies overseas as traders eye next week’s US Federal Reserve meeting, and a lower opening in domestic equities kept pressure on the domestic unit, dealers said.

Meanwhile, data released by the commerce ministry showed, exports grew by 4.5% in February, the lowest expansion in the last four months, to $25.8 billion as shipments of engineering, textiles and gems and jewellery declined, while trade deficit narrowed to a five-month low of $12 billion.

| Read: Exports in February up 4.5% to $25.8 billion; trade deficit narrows

On Thursday, the rupee fell by 10 paise to end at 64.93 against the American currency due to sustained foreign fund outflows amid growing prospects of rate hike by the US Fed next week.