Indian rupee closed flat against the U.S. dollar on Wednesday amid a slump in the dollar index and easing U.S. Treasury yields.
The local currency closed at Rs 83.33 against the U.S. dollar on Wednesday, after opening at Rs 83.32. It closed at Rs 83.34 on Tuesday, according to Bloomberg data.
Here's What Analyst Have To Say
Amit Pabari, MD at CR Forex Advisors
"The robust influx of funds during the ongoing IPO season is further bolstering economic prospects. Consequently, the potential for the USD/INR to strengthen seems limited, with expectations indicating a cap at levels between Rs 83.30 and Rs 83.45," Pabari said.
"However, should the currency pair breach the Rs 83.05 threshold, there is a gradual anticipation of a decline towards the Rs 82.70 to Rs 82.50 mark," he said.
Kunal Sodhani, vice president, Shinhan Bank
"Broader markets are rallying in a risk bid across the board, forcing the USD lower against all of its major FX currency peers. The dovish sentiment, lacking particulars, was enough to kick off a fresh risk bid across the markets, sending equities, gold, and risk asset classes higher as the DXY sold off," Kunal Sodhani, vice president, Shinhan Bank (Global Trading Centre). said.
"For dollar/rupee, Rs 83.15 acts as a support while Rs 83.40 is the resistance," he said.
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