The dollar index hovered near the psychologically crucial 100 mark as hope for the U.S. Federal Reserve to ease monetary conditions next year in the world’s largest economy continued to lift positive sentiment among investors. This supported the Indian unit, according to forex traders,
“Yesterday’s upswing towards the 83.17 (a dollar) level can be attributed to the sustained inflow of capital throughout November and December, coupled with the robust performance of the equity markets, which continue to set new highs,” Amit Pabari, managing director at CR Forex, said.
“With a strong support level established at 83, a sustained position below this mark could potentially lead to a further decline, reaching levels around 82.70-82.50,” Pabari said. “However, it’s worth noting that there is a resistance level at 83.40, which might pose an upper limit to the Rupee’s depreciation against the dollar.”
