Rupee vs US Dollar: INR at 83.02 versus USD

Crude oil benchmarks gained on Wednesday. At the last count Brent crude futures were trading 0.13 percent higher at $90.17 per barrel. WTI futures, too, were trading 0.14 percent higher at $86.8 per barrel.

"The rupee crossing the 83 mark isn't new. However, what remains key is the Reserve Bank of India gearing up to step in. In the past, when the Rupee reached these levels, the RBI took action to safeguard its value by offloading the reserves by about $8 – 10 billion. Not to forget, that the RBI has substantial reserves, with over 600 billion dollars at its disposal. So, they've got the firepower to protect the Rupee when needed. The message was quite clear last time when it disallowed the rupee to weaken in the face of inflationary pressure," said Amit Pabari of CR Forex.

"The chances of USD-INR breaking above 83.25 are merely 10-15 percent. However, initial hours of trade will be crucial to gauge the direction and check for the RBI’s intervention. If RBI intervenes, the pair shall likely move towards 82.90 levels. Following a proper hedging policy in line with risk management would be favourable rather than gauging the rupee momentum when there is uncertainty," he added.