The Indian rupee ended slightly weaker around 89.77 per U.S. dollar at 3:30 p.m., easing about 0.1 percent from the previous close. The move reflected mild dollar strength and cautious risk sentiment, even as traders pointed to likely central bank presence and robust domestic fundamentals as anchors for the currency.
The rupee traded in a narrow band through the session before closing near 89.7725 against the U.S. dollar, marking a modest 0.1 percent depreciation from the prior day’s level. Market participants attributed the subdued move to a firmer greenback overseas and selective dollar bids from importers, while export-related inflows offered intermittent support.
Dealers indicated that the currency action remained orderly, with speculation of intermittent intervention by the Reserve Bank of India helping to smooth volatility and keep the rupee broadly aligned with regional peers. Sentiment was also influenced by global risk cues, including moves in U.S. Treasury yields and crude oil prices, factors that shape foreign portfolio flows into Indian assets.
Key Highlights:
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Closing Level: Rupee around 89.7725 per U.S. dollar at 3:30 p.m., down about 0.1 percent on the day.
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Intraday Range: Trade largely confined to a tight band as markets awaited fresh global data and central bank cues.
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Drivers: Mild dollar strength, importer hedging demand and global risk sentiment weighed on the rupee, while export inflows and likely RBI activity limited losses.
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Macro Backdrop: Solid domestic growth and contained inflation expectations continue to underpin medium-term confidence in the currency despite day-to-day fluctuations.
Sources: Real-time interbank foreign-exchange market quotes, central bank market commentary and leading financial news wire reports on INR/USD movements.