The USD/INR pair was slightly firmer on Friday, while trading not far from an all-time peak, but upside seemed limited by expected equity inflows and some dollar selling.
The BSE Sensex and the Nifty 50 stock indices registered fresh highs on Friday, with traders expecting equity inflows of $500 million to $550 million.
With the exotic currency pair being close to a record high it hit last year, USD/INR is likely to face selling pressure at current levels.
The US Dollar Index was last edging down 0.13% on the day to 105.209, easing from a six-month peak registered on Thursday.
As of 7:05 GMT on Friday the USD/INR pair was inching up 0.07% to trade at 83.0500.
According to Arnob Biswas, head of Forex research at SMC Global Securities, the Reserve Bank of India should allow the Rupee to depreciate beyond 83.30 per dollar following the Federal Reserve’s September policy meeting.
The Indian currency had registered a record low of 83.29 against the US Dollar in October 2022.