Analysts identified key levels for the rupee’s movement, with Rs 83.28 serving as a crucial support and Rs 83.50 as resistance
The Indian rupee held steady against the US dollar on Wednesday, showing little change despite a surge in the greenback fueled by positive economic data from the US. Opening at Rs 83.37 against the dollar, a marginal shift from the previous close, the rupee maintained stability amidst fluctuating market sentiments.
Kunal Sodhani, Vice-President of Shinhan Bank, attributed this resilience to the latest US economic indicators, which tempered expectations of a Federal Reserve rate cut. Sodhani noted, “US job openings slightly exceed expectations, while factory orders show robust growth, impacting Treasury note rates.
“Importers are actively buying dollars to hedge their payables, further influencing the rupee’s stability within the specified range.”
Many Fed officials see three rate cuts as reasonable this year.” However, he cautioned that higher Brent crude prices continued to pose challenges for the rupee, acting as a persistent pressure point.
Analysts identified key levels for the rupee’s movement, with Rs 83.28 serving as a crucial support and Rs 83.50 as resistance. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors, highlighted the rupee’s range-bound behavior, attributing it to the Reserve Bank of India’s (RBI) support around Rs 83.40. Additionally, Bhansali pointed out that importers were actively buying dollars to hedge their payables, further influencing the rupee’s stability within the specified range.
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