Rupee ends at record low of 83.57 against US dollar

Indian rupee hit a new low of 83.57 against the US dollar on Tuesday, influenced by the anticipated result of the US Federal Open Market Committee (FOMC) meeting and the strong performance of the US dollar against other major currencies.

The rupee closed at 83.57 against the dollar, compared to its previous close of 83.51. It opened at 83.49 on Tuesday and previously hit a low of 83.54 on April 18.

Experts in the forex market attribute the rupee’s pressure to the robustness of the dollar against other currencies and the apprehension surrounding the FOMC meeting. The FOMC’s decision from the two-day meeting that commenced on June 11 will be disclosed on June 12.

Market watchers are eagerly awaiting the release of US CPI data, which is crucial for market movements. Additionally, the upcoming US Fed policy and statement holds importance as it will offer forecasts and guidance on future economic conditions, influencing both the dollar and the rupee’s performance, as per Jateen Trivedi, VP (Research Analyst – Commodity and Currency) at LKP Securities.

The rupee is anticipated to have a slightly negative bias due to the strong US dollar and high crude oil prices. However, positive global markets and new foreign inflows might lend support to the rupee at lower levels, according to Anuj Choudhary, a Research Analyst at Sharekhan by BNP Paribas.

Traders are advised to be cautious as India and the US are releasing inflation data. The USDINR spot price is expected to trade in a range of Rs 83.30 to Rs 83.80.

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