The Indian rupee closed weaker against the US dollar on Monday due to a rise in crude oil prices.
The local currency depreciated six paise to close at Rs 83.49 against the greenback. It closed at Rs 83.43 on Friday, according to Bloomberg data.
"The US NFP came in weaker than expected in April, along with lower-than-expected wage growth. The likelihood of a rate cut in September increased, putting pressure on the dollar. The dollar index continues to find immediate support at 104.75, and a breach of this level could potentially lead to 104.20," said Kunal Sodhani, vice president of Shinhan Bank. "For USDINR, Rs 83.30 will act as a support and Rs 83.50 as a resistance."
The overall outlook on the rupee remains optimistic, supported by strong fundamentals and bolstered by foreign investments and RBI reserves, according to Amit Pabari, managing director at CR Forex. The rupee is poised for short-term potential growth, with projections indicating a rise to levels between Rs 83.20 and Rs 83.00. Looking further ahead, medium-term expectations suggest stability around the 82.80 to 82.50 range, he said.
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