Indian Rupee Closes Weaker Against The U.S. Dollar

The Indian rupee closed weaker against the U.S dollar on Tuesday after the dollar index strengthened.

The local currency weakened 19 paise to close at Rs 83.08 against the U.S dollar on Tuesday, after opening at Rs 82.94. It closed at 82.89 on Monday, according to Bloomberg data.

"Fed’s Bostic (Atlanta Federal Reserve President Raphael Bostic) said rates would need to remain on hold until after the summer. European data disappointed, limiting the bullish potential of the Euro, in turn pushing dollar index higher towards 102.80 levels, with next resistance at 103.20," said Kunal Sodhani, vice president of Shinhan Bank.

"For the dollar/rupee, Rs 82.80 will act as a support and Rs 83.10/15 as a resistance," he said.

"Indian rupee is expected to continue in the broad range of Rs 82.70-83.40 and a narrow range of Rs 82.85-83.10 on Tuesday, as RBI buys dollars to protect exports and recoup it's reserves while inflows continue from FPIs and corporate foreign currency loans. Market awaits for next big event of FOMC on Jan. 31," Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.