Rupee weaker on Iraq-led risk aversion

The rupee is weaker at 60.23/24 versus its previous close of 60.07/09 as continued concerns over Iraq violence led to risk aversion.

The market is closely monitoring developments in Iraq. Brent crude went above $115 a barrel on Thursday as the United States said it would send military advisers to Iraq, raising concerns about the escalating conflict.

“There is nothing bigger than Iraq at the moment. It’s all safe haven buying,” said Ashtosh Raina, head of forex trading at HDFC Bank.

The dollar remained under pressure on Friday but managed to win back some lost territory after upbeat U.S. data helped temper the fallout from the Federal Reserve’s surprisingly dovish policy outlook.

The rupee is seen trading in a 60-60.50 range during the session.

Also, foreign institutional investors sold Indian shares worth a net 4.21 billion rupees ($70.52 million), provisional exchange data shows.