Rupee vs US Dollar: INR opens lower at 83.05 versus USD

The dollar strengthened as US retail sales rose by a higher-than-expected 0.6 percent in August. Weekly initial jobless claims also came in at 2,20,000, which were below the forecast of 2,25,000.

“The dollar index saw a remarkable surge, reaching its highest point in the last six months. This remarkable uptick was led by ‘double dhamaka’, primarily attributed to strong US retail sales data that exceeded most expectations, showcasing the resilience and strength of the consumers and so of the US economy,” said Amit Pabari, managing director, CR Forex.

Meanwhile, the euro weakened as the European Central Bank on Thursday increased its key interest rate to a record high of 4 percent on Thursday, but indicated that the rate hike cycle was done.

The ECB also revised its growth and inflation forecasts downward for the upcoming year, underscoring the persistent struggles faced by the European economy.

“Well, though the DXY reached its recent high of 105 levels, the important/reversal level to watch will be 106. As the markets now will also gauge for a potential dovish shift in stance from the Fed next week, the chances of a breakout above 106 for the dollar index seem less likely,” Pabari said.

“Until the pair (rupee-dollar) remains below 83.25, one should remain on the selling side, and buying can be looked at around dips near 82.50 levels,” he added.