Rupee Closes Weaker Against U.S. Dollar

The Indian rupee closed weaker against the dollar on Monday ahead of the monetary policy outcome of the US Federal Open Market Committee this week.

The local currency weakened two paise to close at Rs 82.91 against the U.S. dollar. It had closed at Rs 82.89 a dollar on Friday, according to Bloomberg data.

"The FOMC monetary policy meeting and press conference on Wednesday will be in the spotlight. (The) 10Y UST yields continue to stay higher, while DXY (is) waiting for direction," Kunal Sodhani, vice president of Shinhan Bank, said.

"Chinese data came in better than expected. For USDINR, (Rs) 82.77 acts as a support, while (Rs) 82.98 a resistance," Sodhani said.

The inflows will continue to be absorbed by the RBI, keeping the rupee in a range, according to Anil Bhansali, executive director at Finrex Treasury Advisors.