The Indian rupee opened stronger against the US dollar on Monday.
The local currency strengthens three paise to open at Rs Rs 83.31 against the US dollar on Monday. It ended at fresh record closing low of Rs 83.34 against the US dollar on Friday, according to Bloomberg data.
However, given the sudden volatility in the forex market on Friday, the Reserve Bank of India has sought an explanation from an electronic trading platform regarding a sudden system outage that resulted in sudden sharp volatility in the currency markets.
“Fed Chair Powell said that if it’s appropriate to tighten policy further, the central bank will not hesitate to do so. US CPI to remain under spotlight,” Kunal Sodhani, vice president, Shinhan Bank (Global Trading Centre) said.
For dollar/rupee, Rs 83.20 will act as a support while Rs 83.50 will be the resistance for today, he said.
“Over the next week, we could see dollar/rupee oscillate between Rs 83.10 and Rs 83.50 on spot as RBI remains vigilant to cap volatility but at the same time, hawkish Fed can keep the USD well supported,” Anindya Banerjee from Kotak securities said .