MUMBAI: The Indian rupee ended little changed on Tuesday, despite a broad-based decline in Asian currencies, on expectations that the country’s central bank would shield the domestic unit’s fall to all-time lows.
The rupee closed at 84.0750 to the US dollar, from 84.0775 in the previous session. The local unit had briefly hit a record low of 84.0850 in Monday’s session.
The Reserve Bank of India (RBI) has been intervening regularly to support the rupee, which has meant that the unit’s decline has been measured.
The muted price action in the spot market reveals the extent of the RBI’s control on the currency – for the last eight sessions, the rupee’s intraday trading range has been under three paisa.
“This is a wait-and-watch market. With intraday ranges so thin and heavily monitored by the RBI, it makes little sense to take a directional call on the rupee,” said a trader with a private sector bank.
