Indian Rupee Weakens Against The U.S. Dollar
Indian Rupee depreciated 10 paise to close at 82.85 on Monday.
The Indian rupee depreciated against the U.S. dollar on Monday as high U.S. inflation heightened concerns about Federal Reserve rate hikes.
The local currency depreciated 10 paise to open at 82.85 on Monday, according to Bloomberg data. It weakened 10 paise to close at 82.85.
The rupee closed at 82.75 on Friday.
Prices in the U.S. rose 5.4% from a year earlier, and the core gauge was up 4.7%, both hotter than forecast after slowing for several months, Bloomberg reported, citing the Federal Reserve’s preferred metrics.
"Rising dollar and U.S. yields on mounting worries over the inflation outlook will weigh on the local unit," Reliance Securities said in a note.
The supports for the dollar-rupee spot pair are at 82.60 and 82.35, while resistances are at 82.90 and 83.10, the brokerage said.
"If the pair continues to sustain above 82.85, it could test 83.10-83.30 levels," said Rahul Kalantri, vice president of commodities at Mehta Equities Ltd. Kalantri added that the support is placed at 82.55-82.40.
"We suggest buying in the pair in the range of 82.70-82.70 with a stop loss below 82.40 for the targets of 83.10-83.30."