Rupee Weakens Amid Lower Hopes For Fed Rate Cuts

The Indian rupee closed weaker on Monday after a key Federal Reserve officials indicated that interest rates might stay higher for longer period.

The local currency depreciated 3 paise to close at Rs 83.52 against the U.S dollar, according to Bloomberg data. The currency closed at Rs 83.49 on Friday.

After a tepid week and the rupee hovering around Rs 83.50, it exhibited resilience to breach past the same amid expectations of intervention by the RBI to counter dollar demand from local oil companies, according to Amit Pabari, managing director at CR Forex Advisors.

For USDINR, Rs 83.42 will act as support and Rs 83.60 as a resistance, Kunal Sodhani, vice president of Shinhan Bank, said.