Rupee rises 7 paise to open at 83.20 against the US dollar
US Federal Reserve later in the day. The US dollar index, which measures the greenback against a basket of rivals, stayed mostly flat at 105.13, Reuters reported. On Monday, the rupee depreciated 8 paise to end at a record closing low of 83.27 a dollar.
The local currency is within a whisker of the lifetime low of 83.29. The US Fed is widely expected to keep rates on hold at 5.25% to 5.50%, while focus will remain on the central bank’s forward guidance. The yen was nearly 0.1% higher at 147.77 versus the greenback.
The Australian dollar rose almost 0.1%, while the New Zealand dollar gained 0.2% against the dollar near $0.5950. The euro and sterling stood mostly unchanged in the Asian morning, at $1.0680 and $1.2391 respectively, Reuters reported. “USDINR is expected to face the hurdle near 83.45 and move back towards 83.10 amid softness in dollar.
The growing optimism of Fed pause in its next policy could restrict its upside. However, more focus will be on guidance from central banks to get clues on the future rate trajectory," ICICI Direct said in a note. The brokerage firm expects USDINR to remain in the range of 83.10 - 83.45.
only a move above 83.45 would open the doors towards 83.60, it said. Crude oil prices declined from near 10-month highs hit the previous day amid fears of tight crude supply for the rest of 2023. Brent futures fell 0.89% to $93.50 a barrel, while US West Texas Intermediate (WTI) crude dropped 0.82% to $90.45 a barrel.
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