Rupee ends higher at 75.55 per dollar

Indian rupee ended higher by 21 paise at 75.55 per dollar, amid positive bias seen in the domestic equity market.

It opened higher by 34 paise at 75.42 per dollar against Wednesday's close of 75.76.

Indian currency market was shut on Thursday on account of Buddha Purnima. On May 6, the rupee ended 13 paise lower at 75.76 per dollar.

At 14:05 IST, the Sensex was up 373.15 points or 1.19% at 31816.53, and the Nifty was up 102.70 points or 1.12% at 9301.75.

"The resurfacing of trade tensions between the US and China has again led the rupee to traverse on the declining path. Origin of coronavirus which has inflicted severe global economic damage is the point of contention between the two, and President Trump has threatened fresh tariffs to penalise China," said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.

"Sentiments have also taken a beating amid weak PMI manufacturing numbers, underscoring the impact of coronavirus on the economy, where the overall trend in rupee looks skewed on the downside."

"The IIP numbers ahead are expected to be weak and are going to further worsen the rupee-dollar equation. However, reopening of various economies in a phased manner has boosted risk appetite to some extent and is underpinning the rupee, where 77 mark is guarding it from further depreciation," she added.

Oil prices rose on Friday as more countries began easing lockdowns set in place to stop the coronavirus spreading, giving hope that demand for fuels will pick up after the economic devastation caused by the pandemic.

"May is usually a weak month for rupee. This week's market remained range bound in between 75.50-75.80 range. The risk tone has been tepid and will remain like that on renewed US-China spat," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

"The trade war can reignite going ahead and prop up the safe haven dollar demand. Also, coronavirus cases are increasing, stocking fears of second wave of infection."