Rupee slips to end at 83.52 vs dollar

The rupee experienced a marginal depreciation of 3 paise against the US dollar, closing at 83.502 on Wednesday. Earlier in the trading session, the rupee opened slightly weaker at 83.50, marking a loss of 1 paise compared to its previous close at 83.49 on Tuesday.

Throughout the day, the rupee traded within a narrow range around 83.52, encountering minor weakness, primarily influenced by resistance observed near 83.45. Market analysts anticipate heightened volatility in the forex market ahead of the US inflation data release scheduled for Thursday. This event is likely to impact currency movements, potentially affecting the rupee's stability.

Despite these fluctuations, interventions by the Reserve Bank of India (RBI) have contributed to maintaining a stable rupee. Looking ahead, resistance levels for the rupee are identified between 83.35 and 83.40, while support levels are seen in the range of 83.60 to 83.70.

"The rupee traded in a flat range around 83.52, with minor weakness witnessed as 83.45 acted as a resistance point. The upcoming US inflation data on Thursday is expected to increase volatility in the forex market, potentially influencing the rupee. However, RBI intervention has been helping to keep the rupee stable. Consequently, the rupee range can be seen between 83.35-83.40 as resistance and 83.60-83.70 as support." stated Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.