Rupee faces pressure amid resistance, weak Asian markets

Rupee may face pressure:  Rupee is anticipated to encounter challenges on Wednesday, influenced by declines in Asian currencies and its own inability to surpass a crucial resistance level.

Forecasts from non-deliverable forwards suggest that Rupee will open stey to slightly weaker against US dollar, following its previous session close at 82.8975. 

Trers highlight Rupee's struggle to breach 82.80-82.85 threshold as a crucial obstacle.

According to an FX trer at a bank, a decline below USD/INR level could trigger notable movements, despite notable inflows being observed.

Speculation has emerged that Reserve Bank of India might have intervened to absorb dollars in recent tring sessions.

While most Asian currencies declined on Wednesday, dollar index (USD) remained just below 104 mark. 

Despite weaker-than-anticipated US durable goods and consumer confidence data released on Tuesday, dollar remained largely unaffected.

US durable goods orders dropped by 6.1 per cent last month, surpassing 4.5 per cent decline predicted by economists surveyed by Reuters. ING Bank described data as "messy," noting that certain core elements and capital shipments figures remained resilient.

Investors await release of US core PCE (Personal Consumption Expenditures) data, following elevated inflation figures for January. This has led investors to recalibrate expectations regarding magnitude and pace of anticipated interest rate justments.

Currently, investors have priced in 80 basis points of rate cuts for year, a major decrease from 175 bps anticipated around mid-January.

(With Reuters Inputs)