The Indian rupee closed weaker against the U.S. dollar on Wednesday as the yuan and yen weighed on the Asian currency.
The local currency weakened by 9 paise to close at Rs 83.38 against the U.S. dollar, after opening at Rs 83.33. It closed at Rs 83.29 per dollar on Tuesday, according to Bloomberg data.
The rupee hit Rs 83.45 intraday, the lowest level since Nov. 10, 2023.
The yen has declined to the lowest level since 1990.
The rupee is expected to be in a range with 83.40 being the RBIs pivot, beyond which it could weaken further, according to Anil Bhansali, executive director at Finrex Treasury Advisors. "It being (the) month-end, quarter-end and (fiscal) year-end, some selling is expected to come in dollars as exporters hedge their positions."
The fall in premiums and lower cash spot, however, clearly indicates the cash-dollar shortage running into the system, Bhansali said.
"Mixed US data shows high durable goods orders and lower consumer confidence sway sentiment. ECB rate-cut hints fuel speculation amid divided Fed views on easing," Kunal Sodhani, vice president of Shinhan Bank, said.
"The DXY again trying to test 104.85 levels. Eyes continue to remain on (the) USDCNH pair. For USDINR, 83.25 acts as a support, while 83.50 a resistance," Sodhani said.
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