Rupee falls 10ps to 83.50/$
USD-INR spot price is expected to trade in a range of Rs83.20-Rs83.80. Traders may take cues from inflation data from India and US Investors may also watch out for the FOMC meet this week
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Mumbai: The rupee settled for the day lower by 10paise at 83.50 against the US dollar on Monday, following a rising American currency in overseas markets and a sluggish trend in domestic equities.
Forex traders said the downside in the rupee was restricted by easing political uncertainties as Narendra Modi was sworn in as Prime Minister on Sunday for a record-equalling third term. At the interbank foreign exchange, the local unit opened at 83.48 and settled for the day lower by 10paise at 83.50 against the American currency.
On Friday, the rupee appreciated 13paise to 83.40 against the US dollar. “We expect the rupee to trade with a slight negative bias on strong US Dollar amid rising expectations of a delay in interest rate cut by the US Federal Reserve due to tight job market,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
However, softening crude oil prices and optimism over a stable government may support the rupee at lower levels. Traders may take cues from inflation data from India and the US. Investors may also watch out for the Federal Open Market Committee (FOMC) meeting this week. USD-INR spot price is expected to trade in a range of Rs83.20 to Rs83.80.
