Advertisement

Updated January 8th, 2024 at 10:34 IST

Rupee hits three-week high, traders watch for resistance at 83

The Rupee's ascent was attributed to a widespread willingness to sell dollars, according to a foreign exchange trader at a state-run bank.

Business Desk
Rupees
Rupees | Image:Unsplash
Advertisement

Rupee at 3-week high: Rupee reached a three-week high on Monday, bolstered by widespread selling of the US dollar in the wake of mixed economic data that failed to provide significant support for the greenback.

At 10:08 am, the Rupee stood at 83.06 against the US dollar, marking a 0.1 per cent increase from its previous close at 83.15. In early trading, it reached an intra-day high of 83.0550.

Advertisement

While the dollar index remained relatively stable at 102.49, it had surpassed the 103 mark on Friday following reports of better-than-expected job creation in the US economy for December, with 216,000 new jobs added compared to the forecasted 170,000 by economists. 

However, the dollar's gains were reversed after the ISM services purchasing managers' index revealed a notable slowdown in the US services sector in December.

Advertisement

The Rupee's ascent was attributed to a widespread willingness to sell dollars, according to a foreign exchange trader at a state-run bank. 

The trader stressed that a breach of the "strong resistance" level at 83 could pave the way for further appreciation of the Rupee.

Advertisement

Simultaneously, Brent crude oil futures experienced a more than 1 per cent decline, reaching $77.93 per barrel due to notable price reductions by Saudi Arabia and an increase in OPEC output.

Amit Pabari, the managing director at FX advisory firm CR Forex, expressed optimism regarding the Rupee's future, citing continued dollar inflows and robust domestic economic data as factors supporting its strengthening.

Advertisement

Looking ahead, the focus is expected to shift to US consumer inflation data scheduled for release on Thursday. 

Despite the mixed US economic data having a marginal impact on expectations for Federal Reserve rate cuts, investors are currently pricing in a nearly 64 per cent chance of a rate cut in March, a slight decrease from the 68 per cent reported on January 5, according to CME Group's FedWatch tool.

Advertisement

(With Reuters Inputs)

Advertisement

Published January 8th, 2024 at 10:34 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Whatsapp logo