The Indian rupee displayed resilience by trading against the US dollar despite the challenges posed by a sharp increase in crude oil prices. This positive performance is supported by expectations that the Reserve Bank of India (RBI) would take measures to prevent the currency from falling below its low. The rupee’s opening showed a gain of 3 paise, exchanging at 83.22 against the US dollar compared to the previous day’s closing rate of 83.25.
The dollar index, which measures the strength of the US dollar against six currencies, experienced a rise of 0.26%, reaching 106.32. Forex traders attributed this surge in dollar strength to mounting concerns in the Middle East, leading investors to seek refuge in the greenback.
Despite these challenges, the Indian rupee traded within a range. It faced pressure due to the performance of the US dollar in markets and bearish sentiment in domestic equities.
During the trading session, stability was maintained as the rupee closed at 83.25 against the US dollar. It is important to note that in October 2022, the rupee had reached its all-time low of 83.29. In the meantime, the price of Brent crude oil, a benchmark, increased by 3.13% and reached $87.23 per barrel.
When examining the USD/INR pair, analysts observed a resistance level at 83.30 while the currency pair found support around 82.80. This scenario is reminiscent of a tug-of-war situation, where breaking either crucial level could result in a market shift.