The Indian rupee weakened against the U.S. dollar on Tuesday amid a strong dollar in the international market.
The local currency weakened 29 paise to close at Rs 83.04 against the U.S. dollar on Tuesday. It was the weakest close since Aug. 21 when the rupee closed at Rs 83.11 level. It opened at Rs 82.78.
The rupee had closed at Rs 82.75 on Monday, according to Bloomberg data.
"Looking ahead to the rest of the week, there is potential for the rupee to experience further weakness. As long as the rupee remains below the Rs 82.50 level, there are concerns stemming from the recent rally in crude oil prices. Crude prices have surged from $77 to $85, indicating a further short-term rally in WTI crude. This upward trend in oil prices may exert additional downward pressure on the rupee," Jateen Trivedi, vice president-research analyst at LKP Securities, said .
"In terms of rupee movement, a potential trading range is anticipated between Rs 82.55 and Rs 82.85. If the rupee breaches the lower end of this range (Rs 82.85), it could potentially experience a sharp decline, with a target level of Rs 83.25 coming into play. Traders and investors should closely monitor both the currency and oil markets for further developments in the coming days," Trivedi said.
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