The Indian rupee closed weaker against the U.S. dollar on Tuesday after the dollar index rose to an almost two-week high.
The local currency weakened by 13 paise to close at Rs 83.04 against the U.S. dollar, after opening at Rs 82.94. It closed at Rs 82.91 against the dollar on Monday, according to Bloomberg data.
"Traders brace for a week ahead with no less than five major central banks communicating on their monetary policy," Kunal Sodhani, vice president of Shinhan Bank, said.
US Treasury bond yields push higher across the short and long ends of the curve, pushing the DXY to remain higher, Sodhani said. "For dollar/rupee, Rs 82.80 will act as a support and Rs 83 as a resistance."
"As we approach the important Federal Reserve policy meeting, USD/INR is expected to remain fairly stable, with prices likely to fluctuate between (Rs) 82.65 and (Rs) 83.15," Jateen Trivedi, research analyst at LKP Securities, said. "Any uptick in the exchange rate towards (Rs) 83.15 may encounter selling pressure."
RECOMMENDED FOR YOU
POPULAR