Rupee Opens Flat Against US Dollar

“US economic data shows a slight decline in the Dallas Fed Manufacturing Index. German CPI inflation continues to rise, but below forecasts,” Kunal Sodhani, vice president of Shinhan Bank, said. “The Fed is expected to emphasise keeping interest rates restrictive for a longer period. For USDINR, 83.35 acts as a support, while 83.55 a resistance.”

The start of the election has contributed to the rupee’s weakness despite the RBI’s efforts. The volatility is expected to persist with the polls underway, according to Jateen Trivedi, research analyst – Commodity and currency at LKP Securities.

Significant events this week include the US interest rate decision on Wednesday night and the US non-farm payroll and unemployment data on Friday evening. These events are likely to provide fresh triggers for both the dollar index and the rupee, Trivedi said.