Rupee Weakens Against Dollar

"The upcoming higher volatility, weaker USD and lower U.S. yields amid the Fed rate cut will surely result in a fresh carry trade set-up, and will be an appreciating point for rupee," Amit Pabari, managing director at CR Forex, said.

"DXY is slightly higher supported by US economic data and a slight deterioration in market sentiment," Kunal Sodhani, vice president of Shinhan Bank, said. "The Santa Claus rally took a pause, with Wall Street's main indexes about to end a five-day positive streak."

"Treasury yields reached fresh lows. For USDINR, 83.07 acts as a support while 83.28 a resistance," Sodhani said.