Indian Rupee Closes Stronger Against U.S. Dollar

The Indian rupee closed stronger against the U.S. dollar on Monday ahead of the release of India's CPI data.

The local currency strengthened 3 paise to close at Rs 83 against the U.S dollar. It closed at Rs 83.03 on Friday, according to Bloomberg data.

"Rupee was sold off on Friday as oil companies bought dollar to hedge rising cost of oil which has risen from $77 to $82 a barrel. If oil companies continue buying dollar, we could see rupee at Rs 83.10 today else inflows are good enough for a fall in the pair to Rs 82.90," Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors.

"ECB’s Panetta said the moment is fast approaching for the ECB to cut rates, gradual steps might help to mitigate the volatility on markets which pushed EURUSD towards 1.08 levels. Fed speakers will be speaking during the week while U.S. CPI data is due tomorrow," Kunal Sodhani, vice president of Shinhan Bank said.

"For dollar/rupee, Rs 82.85 will act as a support and Rs 83.15 as a resistance," he said.