The Indian rupee closed stronger against the U.S. dollar on Monday amid an easing dollar index and expectation of foreign capital inflows into Indian equities.
The local currency strengthened two paise to close at 83.14 against the U.S dollar on Monday after opening at Rs 83.10. It closed at 83.16 on Friday, according to Bloomberg data.
"With expectations of further inflows, interventions by the Reserve Bank of India, and robust domestic economic data, the rupee is anticipated to strengthen further. Once the rupee successfully sustains levels below Rs 83, it is poised to reach the range of Rs 82.75-82.50 in the medium term", Amit Pabari, managing director at CR Forex Advisors.
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"The stronger-than-expected US labor data has boosted the dollar demand and pushed 10-year US Treasury yields higher. In response to the data, the Fed funds futures markets lowered the odds of March rate cut to 56%," Kunal Sodhani, vice president of Shinhan Bank said.
"For dollar/rupee, Rs 83.00 will act as a support and Rs 83.25 as the resistance," he said.
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