The Indian rupee closed stronger against the US dollar on Tuesday after the decline in Brent crude a day earlier supported the local currency.
The currency strengthened three paise to close at Rs 83.34 against the greenback. It had closed at Rs 83.37 a dollar on Monday, according to Bloomberg data.
"The focus shifts to upcoming economic data releases, particularly US PMI, GDP, and core PCE data, as investors seek signs of a potential slowdown in US economic indicators that could influence speculation about a Fed rate cut," Amit Pabari, managing director at CR Forex, said.
"A hawkish turn from the Fed, coupled with additional US Treasury supply, could fuel additional upward movements in US Treasury bond yields. This scenario can drive further USD gains following market adjustments to the Fed's actions," Kunal Sodhani, vice president of Shinhan Bank, said. "For USDINR, Rs 83.20 will act as a support and Rs 83.50 as a resistance."
"The selling weakness in bullion and mainly crude, with more than 4% fall in the last few days, has contributed gains to the rupee. The positive trend in the capital market in the past two sessions has also significantly contributed to rupee strength. The overall volatility will continue between Rs 83.20 and 83.65," said Jateen Trivedi, research analyst, commodity and currency, at LKP Securities.
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