Indian rupee closed at a record low of 83.57 against the US dollar on Tuesday ahead of the outcome of the US Federal Open Market Committee (FOMC) and on strong greenback against major currencies.
The rupee closed at a fresh record low of 83.57 against the dollar, compared to Monday’s close of 83.51. The domestic currency opened at 83.49 on Tuesday. The rupee had last touched a record low 83.54 on April 18.
Forex market participants said that the pressure on rupee is on account of strong dollar against major currencies and as the market is getting a bit nervous going into the Fed meeting.
The outcome of the two-day FOMC meet, which started on June 11, will be announced on June 12.
“Participants are keenly awaiting the US CPI data release tomorrow, which is crucial for market movements. Additionally, the upcoming US Fed policy and statement are significant, as they will provide projections and guidance on future economic conditions. These events will heavily influence the dollar and, consequently, the rupee’s performance,” said Jateen Trivedi, VP (Research Analyst – Commodity and Currency), LKP Securities.
The domestic currency is expected to trade with a slight negative bias on the strong US dollar and elevated crude oil prices. However, positive global markets and fresh foreign inflows may support rupee at lower levels, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
Traders may remain cautious ahead of inflation data from India and the US. USDINR spot price is expected to trade in a range of Rs 83.30 to Rs 83.80, he said.
© The Indian Express Pvt Ltd
First uploaded on: 12-06-2024 at 05:22 IST
