The Indian rupee closed weaker against the dollar on Wednesday after retail inflation remained mostly unchanged in February.
The local currency depreciated by nine paise to close at Rs 82.86 against the U.S. Dollar, after opening at Rs 82.81. It had closed at Rs 82.77 on Tuesday, according to Cogencis data.
"After the US labour market showed mixed figures for February, the hot CPI figures failed to trigger major changes in expectations," Kunal Sodhani, vice president of Shinhan Bank, said.
The 10-year US Treasury bond yield and the dollar index rebounded. For USDINR, Rs 82.70 acts as a support, while 82.95 a resistance, according to Sodhani.
The rupee remained resilient as inflows were well managed by the RBI as it took rupee to Rs 82.77 after it made a six-month high of Rs 82.64 on Monday, according to Anil Bhansali, executive director at Finrex Treasury Advisors. "Today, the rupee is expected to be in a range as given above with movement on both sides."
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