Rupee Closes Flat Against Dollar
The currency closed at 83.39 against the greenback.
The rupee closed flat against the dollar on Monday after a strong U.S. jobs report suggested that the Federal Reserve may not start cutting rates early in 2024.
The currency closed at 83.39 against the greenback, according to Bloomberg data.
"The US labour market may convince the Fed to delay rate cuts in 2024," Kunal Sodhani, vice president of Shinhan Bank, said. "Chinese CPI and PPI came in worse than expected."
Traders will monitor the US inflation data ahead of the Federal Open Market Committee's meeting and the European Central Bank's monetary policy meeting, Sodhani said. "For USDINR, 83.30 acts as a support, while 83.50 acts as a resistance."
"The robust growth outlook, coupled with substantial FPI and FDI inflows throughout November and December, positions the rupee to gather strength against the dollar," Amit Pabari, managing director at CR Forex Advisors, said.
"As the pair is unable to break the resistance of 83.45 on the upside, breaching the support in the range of 83.05–83 on the downside might signal a path for the rupee to gain momentum, potentially reaching levels of 82.75–82.50," Pabari said.
