Indian Rupee Closes Weaker Against US Dollar

The Indian rupee closed weaker against the US dollar on Monday ahead of the US Federal Open Market Committee's meeting starting Tuesday.

The local currency closed 12 paise weaker against the US dollar at Rs 83.47. It closed at Rs 83.35 on Friday, according to Bloomberg data.

"The US PCE inflation rose by 2.7% y/y in March, compared to 2.5% prior, which was hotter-than-expected adding to market doubts about near-term US Fed rate cuts. Eyes will remain on FOMC and NFP data," said Kunal Sodhani, vice president of Shinhan Bank. "For dollar/rupee, Rs 83.30 will act as a support and Rs 83.47 as a resistance."

The rupee may gradually strengthen to around Rs 83.20-83.00 in the short term, with medium-term expectations pointing towards a rise to around Rs 82.50 levels, according to Amit Pabari, managing director at CR Forex.