The Indian rupee opened stronger against the U.S. dollar on Thursday.
The local currency strengthened three paise to open at Rs 83.24 against the U.S. dollar on Thursday. It closed at Rs 83.27 against the U.S. dollar on Wednesday, according to Bloomberg data.
“The Indian rupee could start this Thursday on a flat note as expectations of RBI presence could offset losses coming from an overnight rally in crude, U.S. Treasury yields, and the dollar,” Reliance Securities said in Oct. 19 note.
The Rupee may open around Rs 83.2300-83.2400 against the greenback compared with Rs 83.2600 in the previous session, with the possibility of trading between Rs 83.1500 and Rs 83.3400 on Thursday, the brokerage said.
“Crude oil prices experienced an uptick, likely driven by geopolitical tensions, such as the Middle East and the visit of US President Biden to Israel. These events have been closely monitored and could have implications for global markets”, Jateen Trivedi, vice president of research at LKP Securities, said.
“Indian capital markets have seen substantial selling pressure, potentially due to a combination of global and domestic factors. Overall, the rupee remains weak in the near term, although the RBI’s intervention continues to provide some stability,” Trivedi said.
“Rising tensions in the Middle East are leading to risk-off sentiment, and stronger US yields are pushing the US dollar higher. 10-year US Treasury yields reached it highest level since 2007, while DXY again surpassed 106.50 levels,” said Kunal Sodhani, vice president, Shinhan Bank (Global Trading Centre).
“For dollar/rupee, the support is seen at Rs 83.15 while the immediate resistance is seen at Rs 83.32 followed by Rs 83.50,” he said.
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