The Indian rupee closed above the Rs 83 mark against the U.S. dollar on Wednesday amid a strong greenback and rising crude oil prices.
The local currency weakened 10 paise to close at Rs 83.14 against the U.S. dollar after opening at Rs 83.02 on Wednesday. This is the weakest close level since Aug 17. It closed at Rs 83.04 on Tuesday, according to Bloomberg data.
Reliance Securities expected the rupee to open in the range of Rs 83.05-83.07 against the dollar, compared with Rs 83.04 in the previous session. The range for the session is between Rs 82.8500 and Rs 83.1500 this Wednesday, according to the brokerage.
"As for the rupee's trading range, it is expected to be between Rs 82.70 and Rs 83.25, with a bias towards weakness, especially if it faces upward pressure. Traders and investors will closely monitor developments in the currency and oil markets, as well as any news related to the Federal Reserve's policy decisions, to gauge the rupee's future trajectory," Jateen Trivedi, vice president, research analyst at LKP Securities, said.
"Looking ahead, one of the key factors influencing the rupee's movement will be the outcome of the Federal Reserve's upcoming meeting later this month. The rise in the dollar index indicates expectations of an impending interest rate hike, and this is impacting currency markets, including the rupee," Trivedi said.
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