The Indian rupee was trading marginally higher to the U.S. currency on Monday, buoyed by an uptick in Asian peers and expectations that a key level will hold.
The rupee was at 82.7375 per U.S. dollar by 09:50 a.m. IST compared with 82.87 in the previous session.
The resistance near 83.00/83.25 is expected to hold out and at the same time, 82.50/60 should offer meaningful support, Anindya Banerjee, head research – fx and interest rates at Kotak Securities, said.
“We could be in for a narrow-range trading over this week.”
The rupee’s Asian peers were mostly higher on Monday, led by the Japanese yen. The yen rose to near-136 to the dollar, following a report by Kyodo on Saturday.
The news agency reported that Japan’s Prime Minister Fumio Kishida aims to make the Bank of Japan’s 2% inflation target a more flexible goal by revising its decade-old joint statement with the central bank.
The yen’s strength spurred the dollar index to drop to 104.56. This is not too far from its recent lows, despite hawkish remarks from the U.S. Federal Reserve policymakers.