India Rupee Strengthens Against U.S Dollar

The Indian rupee closed stronger against the U.S. dollar after the interim budget 2024 announcement.

The U.S. Federal Reserve also kept its key interest rate unchanged for the fourth straight meeting on Wednesday and signalled a rate cut this year, but indicated that it is not in a rush to ease policy.

The local currency strengthened 6 paise to close at Rs 82.98 against the U.S dollar. It closed at Rs 83.04 on Wednesday, according to Bloomberg data.

"Fed leaves rates unchanged, cautions uncertainty in the economic outlook, and emphasises the need to see inflation lowering towards 2%. No major impact was seen on the financial markets. All eyes will remain on India's interim budget," said Kunal Sodhani, vice president of Shinhan Bank. "For the dollar/rupee, Rs 82.95 will act as support and Rs 83.20 will act as resistance."

"The Indian rupee looks to be ranged and boxed narrowly between Rs 83.00 and Rs 83.20 as the Fed clearly passed away the rate cut in March, taking the dollar index up but yields fell. As flows are good, upticks need to be sold near Rs 83.15-83.17, while downticks need to be bought near Rs 83.00," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors.