The Indian rupee closed stronger against the U.S. dollar on Thursday after the minutes of Fed's latest meeting showed that policymakers were not in a hurry to cut rates anytime soon, pulling the dollar index lower.
The local currency strengthened 12 paise to close at Rs 82.85 against the U.S. dollar. This is the highest closing level since Sept. 4, 2023.
It closed at Rs 82.97 on Wednesday, according to Bloomberg data.
"Fed officials noted that they wanted to see more evidence before starting to cut rates. U.S. 10-year Treasury note yields rose, while the dollar index dipped slightly, reflecting the Fed's cautious outlook," Kunal Sodhani, vice president of Shinhan Bank, said.
"For dollar/rupee, Rs 82.77 will act as a support and Rs 83.05 as a resistance," he said.
"Technical analysis reveals a clear pattern of lower highs and lower lows into bearish trend channel, indicating a formidable resistance level at 83.10-15. Overall, there is a higher potential for the pair to breach 82.80 level and set a target of 82.50 and 82.20", Amit Pabari, managing director at CR Forex Advisors.
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