The Indian rupee closed weaker against the U.S. dollar on Monday amid continuing geopolitical tension.
The local currency weakened seven paise to close at Rs 83.19 against the U.S dollar on Monday, after opening at Rs 83.17. It closed at Rs 83.12 on Friday, according to Bloomberg data.
"On Indian rupee volatility, from Jan. 1 to now, the rupee depreciation has been by 0.6%. The appreciation of USD for the same period has been in the order of 3%. So, rupee is stable, and RBI is in the market to prevent excessive volatility," RBI Governor Shaktikanta Das said, on the sidelines of the Kautilya Economic Conclave on Friday.
"The rupee gained against the dollar on Friday after India's public sector banks sold dollars aggressively, likely for the central bank in the spot and non-deliverable forward market to provide relief to the rupee," Reliance Securities said in a note.
"Additionally, the RBI has been aggressively intervening in the markets, and further intervention could also lend support to the rupee," the brokerage said.
"Geopolitical tensions continue to hang over the market. Fed Chair Powell and other Fed officials signalled that rates would be held steady at its November meeting. Market players will focus on the U.S. PMI, growth numbers, and the Core Personal Consumption Expenditures," said Kunal Sodhani, vice president, Shinhan Bank (Global Trading Centre).
For dollar/rupee, the support is seen around Rs 83.00, while the resistance is around Rs 83.28, he said.
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