Indian Rupee Closes Stronger Against U.S. Dollar
Rupee appreciated 5 paise to close at Rs 82.97 against the U.S. Dollar. It closed at Rs 83.02 on Friday, according to Bloomberg data.
The Indian rupee closed stronger against the U.S. dollar on Tuesday ahead of the release of the minutes of the latest Federal Reserve meeting that would through light on the outlook for US interest rates.
The local currency appreciated 5 paise to close at Rs 82.97 against the U.S. Dollar. It closed at Rs 83.02 on Friday, according to Bloomberg data.
Foreign exchange markets were closed on Monday in observance of Shivaji Maharaj Jayanti.
"Markets are digesting geopolitical headlines out of Gaza and the broader Middle East. Investors will take more cues from the FOMC minutes for the January meeting, with the focus on any discussion around the timing of rate cuts," Kunal Sodhani, vice president of Shinhan Bank, said.
"For dollar/rupee, Rs 82.90 will act as a support and Rs 83.20 as a resistance," he said.
"Investors are now eagerly awaiting the release of the Federal Reserve meeting minutes scheduled for Tuesday. Despite this, the prevailing market sentiment suggests that traders are contemplating the potential for two to three rate cuts," Amit Pabari, managing director at CR Forex Advisors
"However, it's crucial to note that the likelihood of swift and substantial rate reductions throughout the remainder of the year remains somewhat constrained," Pabari said.
