Rupee vs dollar: INR falls to 82.45 versus USD

"After trading in a narrow range of 81.80 to 82.05 for almost 20 days, the Indian Rupee posted its worst daily return in over a month on Wednesday. The losses were seen expanding its wings in the NDF market where it was once trading at 82.46," said Amit Pabari, the managing director of Forex Advisors.

"The US Dollar index jumped to 103.40 as the US 10-year bond yield quoted at 3.95 percent, the highest since the banking crisis period(March 2023) after Fed meeting minutes showed hawkish signals from Fed. Today, the focus will be on ADP(private) non-farm employment data, unemployment claims, ISM services PMI and JOLTS job openings. Tomorrow, the official US job report will be closely eyed," he added.

Talking about the outlook, Pabari said the syncing process in the rupee, based on the performance of its peer currencies (yuan and yen), and the movement in the US DXY, has finally started. "As the cycle in the pair turns higher with decent momentum or volatility, we expect it to continue towards 82.50 and finally up to 82.80-90 levels over the short term," he said.

Indian benchmark indices Sensex and Nifty 50 were trading in the green around, both up 0.3 percent higher, around 11.35am on Thursday, July 6.