The Indian rupee closed stronger against the U.S. dollar on Wednesday.
The local currency appreciated 4 paise to close at Rs 83.12 against the U.S. dollar. On Tuesday, it settled at 83.16 against the U.S. dollar.
“The rupee remained in a range of Rs 83.1050-83.17 for the entire day but closed at an almost-day high of Rs 83.1225. In-flows continued getting absorbed by the RBI and oil companies, keeping the rupee in the above range,” said Anil Kumar Bhansali, head of Treasury and executive director, Finrex Treasury Advisors LLP.
The dollar index shed as much as 0.44% intraday to 103.16 on Wednesday, compared to Tuesday’s close of 103.62, according to Bloomberg data.
“Moving forward, it will be a truncated week, with Monday declared a public holiday by the RBI and Friday being Republic Day. The focus will remain on equity market sentiment, FPI, and FDI flows. Over the short term,” said Amit Pabari, managing director at CR Forex Advisor.
“As the dollar-rupee finds support around Rs 82.80 levels, the currency is expected to hover between Rs 82.80 and Rs 83.30. While levels near Rs 83.10–83.20 are deemed the selling zone. To buy, one can participate around Rs 82.70–82.80, but only for near-term payables, as overall biases remain on the downside,” he said.
