Rupee Strengthens Against Dollar on Monday

The Indian rupee gained strength on Monday, closing at 83.4600 against the U.S. dollar, up from 83.5325 in the previous session. This improvement was supported by the appreciation of most Asian currencies and dollar sales from foreign banks, despite some gains being offset by bids from oil companies. The dollar, which had dipped from a near two-month high, was down 0.2% at 105.64. The Indonesian rupiah led the gains among major Asian currencies with a 0.3% increase.
Traders suggest that the rupee might decline temporarily before resuming its upward trend. The USD/INR pair is expected to fall to 83.20 if it drops below 83.40, and rise to 83.80 if it surpasses 83.60. Dollar inflows are anticipated due to the inclusion of domestic bonds in a JPMorgan index, potentially bringing in around $2 billion by June 28.
The trading strategy recommended is to buy USD/INR on dips around 83.20–83.10 and sell on upticks around 83.50-83.70. Investors are also awaiting comments from Federal Reserve policymakers for indications on future interest rate changes, with a 67% chance of a rate cut in September according to CME’s FedWatch tool.