The Indian rupee weakened against the U.S. dollar on Wednesday amid the surging U.S. Treasury yield.
The local currency weakened 3 paise to close at Rs 83.24 against the U.S. dollar on Wednesday after opening at Rs 83.22. The rupee had closed at 83.21 on Tuesday, according to Bloomberg data.
Reliance Securities expected the rupee could open around Rs 83.20–83.21 against the dollar, compared with Rs 83.20 in the previous session.
For the day, the brokerage expects the rupee to trade between Rs 83.1000 and Rs 83.3000.
"Rising US Treasury yields, a faltering global growth outlook, supply-constrained rising oil prices, and a short-term government funding stopgap for the US are all sending investors into the safe-haven USD. Eyes now remain on U.S. NFP data," Kunal Sodhani, vice president, Shinhan Bank (Global Trading Centre), said.
"For the dollar/rupee, Rs 83.05 will act as a support and Rs 83.30 as an immediate resistance, followed by Rs 83.50,, Sodhani said.
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