Indian Rupee Ends Flat Against The U.S. Dollar
Rupee closed flat at 83.27 against the U.S. dollar on Wednesday.
The Indian rupee ended flat against the U.S. dollar on Wednesday.
The local currency closed flat at 83.27 against the U.S. dollar on Wednesday, after opening at Rs 83.22. It closed at Rs 83.26 against the U.S. dollar on Tuesday, according to Bloomberg data.
"The Indian rupee could start stronger this Wednesday morning as upbeat data from China supports the Chinese yuan and most Asian peers", Reliance Securities said in an Oct. 18 note.
The brokerage expected the rupee to open around Rs 83.20–83.21 against the dollar, compared with Rs 83.2575 in the previous session.
For the day, the brokerage expects the rupee to trade between Rs 83.1500 and Rs 83.3300.
"U.S. retail sales and industrial production data initially boosted the DXY, but the impact was short-lived. But US Treasury yields rose sharply, with higher yields across the curve offsetting the impact on the dollar. Brent crude prices are once again slowing and moving higher," said Kunal Sodhani, vice president, Shinhan Bank (Global Trading Centre).
"For USDINR, Rs 83.10 will acts as a support and Rs 83.30 will be its immediate resistance followed by Rs 83.50," he said.
"The rupee continued to trade within a relatively tight and sideways range between 83.19 and 83.25. This stable pattern has been in place for about a month, and the RBI seems to be preventing the rupee from falling below 83.30. The dollar index has been fluctuating within the range of $106.20 to $106.40. Geopolitical tensions involving Israel and Gaza have added complexity to the foreign exchange market dynamics," Jateen Trivedi, vice president of research at LKP Securities, said.
"It's important to keep a close watch on geopolitical developments and their potential impact on currency markets, as well as the continued involvement of the RBI in managing the rupee's exchange rate. The rupee's trading range is likely to persist, with a downside bias in the coming sessions," Trivedi said.
