Rupee Closes Stronger Against U.S. Dollar
The local currency strengthened 14 paise to close at Rs 83.29 against the U.S. dollar.
The Indian rupee closed stronger on Tuesday after the dollar index came off from an over one-month high.
The local currency strengthened 14 paise to close at Rs 83.29 against the U.S. dollar after opening at Rs 83.36. It had recorded its lowest-ever close at Rs 83.43 on Friday, according to Bloomberg data.
"Mixed Fed views and weaker US housing data contrast with ECB optimism on inflation and potential rate cuts," Kunal Sodhani, vice president of Shinhan Bank, said. Eyes continue to remain of USDCNH pair, which has cooled off from 7.28 to 7.24. For USDINR, 83.25 acts as a support, while 83.55 a resistance."
Friday's momentum was panic-driven and short-lived. India's strong fundamentals and record forex reserves provide a cushion, enabling the RBI to mitigate the rupee's downside, according to Amit Pabari, managing director at CR Forex Advisors.
With these factors in play, the bias remains tilted towards the upside for the rupee, with expectations of it strengthening towards the 82.80 mark in the short term, Pabari said.
