The Indian rupee closed little changed against the US dollar on Tuesday, mirroring the relatively steady greenback. The local currency ended trading at Rs 84.079 per dollar, compared to the previous close of Rs 84.076, as per Bloomberg data.
The rupee traded in a very narrow range through the day, with likely Reserve Bank of India interventions providing crucial support on the downside.
Data released on Friday shows a dip in India’s forex reserves for the third consecutive week, reflecting the central bank’s recent support for the domestic currency. During times of volatility, the central bank deploys its dollar reserve to stabilise the local currency.
“With critical US economic data releases slated for this week, the rupee’s immediate trajectory hangs in the balance. Investors are watching for key factors that could sway the dollar’s strength, impacting the rupee’s positioning,” said Amit Pabari, analyst at CR Forex Advisors.
