The rupee closed flat against the dollar on Tuesday after a steady dollar index and stable prices of crude oil.
The local currency closed at Rs 83.39 after opening at Rs 83.37 against the greenback. It had closed at Rs 83.39 on Monday, according to Bloomberg data.
"The rupee continued its range-bound trading, displaying resilience at lower levels," Jateen Trivedi, vice president of research at LKP Securities, said. "As the week unfolds with significant events like the US CPI on December 12, 2023, followed by the interest rate decision on December 13, 2023, the global currency markets are expected to experience heightened volatility."
Despite this, the rupee seems largely unaffected, maintaining its range between 83.20 and 83.50, according to Trivedi.
The dollar is witnessing a strong uptrend and trading above 104, bolstered by rising yields and the cooling of dovish bets on the Fed after the release of strong labour-market figures, according to Kunal Sodhani, vice president of Shinhan Bank.
"US CPI numbers due today. For USDINR, 83.25 acts as support, while 83.45 a resistance," Sodhani said.
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