Recently, USD-INR has been bearish and the dollar index is indicating a strengthening dollar. The rupee (INR) opened considerably lower on Monday, i.e., at 73.18 and drifted lower to end the session at 73.25 against the US dollar (USD).
INR faces hurdles; may depreciate today
Today, the domestic unit is hovering at around 73.15. If it depreciates from here, it can find supports at 73.40 and 73.50. On the other hand, if the rupee goes up, it can face hindrance at 73.15, above which 73 can act as a strong resistance.
Despite the domestic equity market closing marginally higher on Monday, it witnessed considerable sell-off intraday.
The dollar index extended the gains yesterday and closed at 92.31, against the previous session’s close of 91.98. It is likely to head towards 92.65 and then 93.00 as the near-term trend is now bullish. The rising dollar can weigh on the Indian currency.