The Indian rupee closed weaker against the U.S. dollar on Tuesday as a hawkish Fed outlook pushed Treasury yields higher and strengthened the greenback.
The local currency weakened 17 paise to close at Rs 83.21 against the U.S. dollar on Tuesday. It closed at Rs 83.04 on Friday, according to Bloomberg data.
"Climbing U.S. Treasury yields on a hawkish Fed rate outlook and U.S. market jitters over political budget brinkmanship are rattling broad-market investor sentiment and sending risk-off flows piling into the USD. DXY above 107 levels while Brent prices cooled off," said Kunal Sodhani, vice president, Shinhan Bank (Global trading Centre).
"For dollar/rupee, Rs 83.10 acts as a support and Rs 83.30 immediate resistance followed by Rs 83.50," he said.
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