The Indian rupee ended at a new closing low against the dollar on Thursday on oil importers dollar demand and a surge in the greenback.
The local currency depreciated two paise to close at Rs 83.45 against the dollar. It had closed at Rs 83.43 a dollar on Wednesday, according to Bloomberg data.
The oil rose towards a five-month high after OPEC+ confirmed that it would maintain its existing supply cuts through the end of June.
The way global markets scenario going on, especially from oil front, local oil importers were quite aggressive bidding the dollar. That's why we've seen the downward pressure despite seeing a pull-off in dollar globally, according to Arnob Biswas, Head of FX Research, SMC Global Securities Ltd.
"In India, till today 5 p.m., the exchange position will get wind up, whatever the short position, from tomorrow onwards there'll be no action on the exchange side. Going forwards, rupee's fall will be moderated," Biswas said.
"Federal Reserve policymakers grabbed the headlines, while US economic data was mixed, with a strong ADP report but softer PMIs," Kunal Sodhani, vice president of Shinhan Bank, said. "For dollar/rupee, Rs 83.35 will act as as a support and Rs 83.60-83.65 as a resistance."
A close look at what the RBI does will be the key to rupee movement today as it goes ahead with the second day of the monetary policy meeting, according to Anil Bhansali, executive director at Finrex Treasury Advisors.
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