Mumbai: The rupee on Friday opened 63.81 after closing at 63.50 ending its 5-day-gain on Thursday.
The rupee has been on a recovery trail helped by recent steps like the passage of the Pension Bill in Parliament and the central bank providing a concessional swap facility to banks to attract overseas deposits from non-resident Indians, which by some estimates can net around $10 billion, helping ease some of the recent despondency about policy making in India.
Foreign buying in Indian equities has continued to remain strong, now adding up to nearly $900 million in five sessions, including provisional data for Wednesday. Analysts, however, are cautious to already call a turn in fortunes for the rupee.
After favourable trade data, that showed the trade deficit narrowed most in five months, economists awaiting July factory and August retail inflation data later on Thursday to provide cues ahead of the central bank's policy meeting next week. Wholesale inflation data is due on Monday.
India's factory output likely shrank for the third straight month in July, while wholesale inflation likely edged up to a six-month high in August. In the offshore non-deliverable forwards, the one-month contract was at 64.29 while the three-month was at 65.56.
In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed around 63.94 with a total traded volume of $3.4 billion.
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