Rupee Holds Steady Amid Global Uncertainty, Ends Marginally Lower Against Dollar

Indian Rupee Ends Little Changed at 87.9275/USD as Markets Weigh Global Signals

In Monday’s trading session, the Indian rupee closed marginally lower at 87.9275 against the U.S. dollar, compared to its previous close of 87.9750. The movement was largely range-bound, reflecting cautious sentiment among traders amid global economic uncertainty, stable crude oil prices, and subdued dollar strength.

Currency markets remained quiet ahead of key macroeconomic data releases from the U.S. and Europe, with investors closely watching inflation trends and central bank commentary. Domestically, the Reserve Bank of India’s measured approach to liquidity and forex management helped maintain rupee stability despite external pressures.

The rupee’s performance also mirrored broader emerging market trends, where currencies showed limited volatility due to a lack of directional triggers. Exporter dollar sales and mild foreign inflows provided support, while import-related demand capped gains.

Major Takeaways and Market Highlights

- Closing Rate
The rupee ended at 87.9275 per U.S. dollar, slightly weaker than Friday’s close of 87.9750.

- Trading Range
The currency traded in a narrow band, reflecting low volatility and cautious positioning.

- Global Factors
Mixed signals from global markets, including steady crude prices and muted dollar index movement, influenced sentiment.

- RBI’s Role
The Reserve Bank of India’s calibrated intervention and liquidity management helped maintain rupee stability.

- Demand-Supply Dynamics
Exporter dollar sales and mild foreign inflows supported the rupee, while import-related dollar demand limited upside.

- Outlook
Traders expect continued range-bound movement until clearer cues emerge from global inflation data and central bank decisions.

With the rupee showing resilience amid global headwinds, market participants will now turn their attention to upcoming economic indicators and policy signals. The currency’s ability to hold ground reflects India’s relatively strong macro fundamentals and prudent monetary oversight.

Sources: NSE India, Reuters, Economic Times.