The rupee opened on a flat note and depreciated three paise to 73.07 against the US dollar in opening trade on Friday tracking the muted opening in domestic equities.
At the interbank forex market, the domestic unit opened at 73.07 against the US dollar, registering a fall of 3 paise over its previous close.
On Thursday, the rupee had settled at 73.04 against the American currency.
“The rupee is sustaining below 73.20 levels indicating a negative momentum may continue in today’s session. Support is at 72.95 – 72.80 levels for the spot pair. Resistance for the pair is 73.20,” said Kshitij Purohit, Product Manager, Currency and Commodities at CapitalVia Global Research.
Traders said most Asian currencies are trading weak against the US Dollar as the dovish comments from the US Fed Chief Jerome Powell weighed on the greenback and could keep gains in check.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.06 per cent to 90.29.
“The US dollar index is trading flat this morning in Asian trade against major peers as dovish Fed offset US stimulus plan from the President-elect Joe Biden,” Reliance Securities said in a research note.
The euro, the sterling and the Japanese yen were trading flat against the US dollar in Asian trade.