The Indian rupee closed nearly flat at 88.7750 per U.S. dollar on Monday, slightly above its previous close. Limited dollar demand and cautious trading ahead of global economic events kept the currency stable. Analysts expect the rupee to remain range-bound, influenced by global cues and central bank signals.
The Indian rupee showed little movement on Monday, closing at 88.7750 per U.S. dollar as of 3:30 p.m., marginally higher than its previous close of 88.7650. The currency remained range-bound amid subdued dollar demand and cautious investor sentiment ahead of key global economic data.
Key takeaways:
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Minimal fluctuation: The rupee moved within a narrow band, reflecting a wait-and-watch approach by traders.
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Muted dollar demand: Importers and corporates showed limited interest in dollar buying, keeping pressure off the rupee.
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Global cues in focus: Market participants are eyeing the upcoming U.S. Federal Reserve policy signals and India’s Q2 GDP data for directional clarity.
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RBI’s presence likely: Dealers hinted at possible Reserve Bank of India interventions to smooth volatility, though no aggressive moves were reported.
The rupee’s stability comes despite global uncertainties and fluctuating crude oil prices. Analysts suggest that while the domestic currency remains resilient, external headwinds and capital flows will continue to influence its trajectory in the near term.
Sources: Reuters, Reserve Bank of India, Economic Times