The Indian rupee closed weak against the U.S. dollar, ahead of the Federal Open Market Committee's meeting outcome.
The local currency weakened three paise to close at an all-time weakest level of Rs 83.29 against the U.S. dollar on Wednesday, after opening at Rs 83.26. It closed at 83.26 on Tuesday, according to Bloomberg data.
'No Surprises Expected From The Fed'
Kunal Sodhani, vice president, Shinhan Bank (Global Trading Centre)
"No surprises are expected from the Fed and may hold the same tone and message as the previous one. Expectations that the ECB is done raising rates undermine the Euro and act as a headwind. DXY may find resistance at 107.20 levels," Sodhani said.
Dollar/rupee may find support around Rs 83.18 and immediate resistance around Rs 83.30, a break of which can lead towards Rs 83.50, he said.
'Rupee Is Plagued With Dollar Outflows From FPIs'
Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP
"The RBI faces a poignant situation as its FEX reserves decline to $583.53 billion at the end of Oct. 20, while it has been intervening in the market to prevent rupees decline below 83.2950, its lowest level. The rupee is plagued with dollar outflows from FPIs, oil companies, importers and ECB redemptions. Today's 83.29 is the lowest closing," Bhansali said.
"The yen, Euro, pound all continued to weaken before the all important Fed meeting after a small rally yesterday, while Asian currencies continue with their declining trend after a strong dollar and weak Chinese PMI data," he said.
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