The Indian rupee opened weaker against the U.S dollar on Tuesday after the dollar index strengthened.
The local currency depreciated five paise to open at Rs 82.94 against the greenback on Tuesday. It closed at Rs 82.89 on Monday, according to Bloomberg data.
“Fed’s Bostic (Atlanta Federal Reserve President Raphael Bostic) said rates would need to remain on hold until after the summer. European data disappointed, limiting the bullish potential of the Euro in turn pushing dollar index higher towards 102.80 levels, with next resistance at 103.20,” said Kunal Sodhani, vice president of Shinhan Bank.
“For the dollar/rupee, Rs 82.80 will act as a support and Rs 83.10/15 as a resistance,” he said.
“Indian rupee is expected to continue in broad range of Rs 82.70-83.40 and a narrow range of Rs 82.85-83.10 on Tuesday as RBI buys dollars to protect exports and recoup it’s reserves while inflows continue from FPIs and corporate foreign currency loans. Market awaits for next big event of FOMC on Jan. 31,” Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
