Rupee opens higher and could gain more due to a weak US currency and falling crude oil prices.

In comparison to the previous finish of 82.80 per dollar, the Indian Rupee started the day slightly higher at 82.77 per dollar. On Thursday, the local currency is anticipated to strengthen due to a weaker dollar and falling crude oil prices. Furthermore, the currency pair may be supported by upbeat mood on the world market.

Sharp increases, however, might be avoided as a result of investors’ caution ahead of important US economic data. “US$INR (January) is seeing significant resistance near levels of 83.10. If it continues to trade below this level, it could revert to levels around 82.50, according to ICICIdirect. Today, the emphasis will be on US private payrolls and PMI services. “We anticipate good trading and quotes for the USDINR(Spot) in the area of 82.50 and 83.05,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

“On Wednesday, the Indian Rupee strengthened by 0.19% due to a strong drop in crude oil prices and a weak US Dollar. The native currency was also supported by solid macroeconomic indicators. We anticipate that the rupee would trade with a modest negative bias as prolonged foreign capital outflows could keep the rupee under downward pressure while low crude oil prices could prevent a significant decline.

Ahead of the FOMC minutes, the US ISM manufacturing PMI, and the JOLTS job openings data, traders may exercise caution. Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas, predicted that the USDINR spot price would fluctuate between Rs 82.30 and Rs 83.30.

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