The Indian rupee closed weaker on Friday, tracking the strengthening of the dollar index following the release of higher-than-expected US consumer inflation.
The local currency depreciated 23 paise to close at Rs 83.42 against the US dollar. It had closed at Rs 83.19 on Wednesday, according to Bloomberg data.
"The rupee faces some short-term hurdles, but the downside will be limited to Rs 83.40-83.50 levels," said Amit Pabari, managing director at CR Forex Advisors. "Short-term projections suggest the rupee's potential range between Rs 83.00 and Rs 83.40, while the medium-term expectations indicate appreciation to around Rs 83.00-82.80."
"Contributing to the dollar uptick, US yields across different timeframes to multi-week tops in response to the higher-than-estimated US CPI figures for March. Mixed US PPI figures and dovish Fed comments have eased risk aversion," Kunal Sodhani, vice president of Shinhan Bank, said.
"For dollar/rupee, Rs 83.20 will act as a support and Rs 83.50 as a resistance," he said.
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