Rupee ends flat at 83.90 per US dollar amid steady month-end demand

The Indian rupee remained almost flat on Monday, and closed at 83.90 versus the US dollar as demand for dollars from local banks and corporates remained steady due to month end demand, traders said.The local currency was weaker by 1 paisa, ending at 83.90 versus the US dollar, as against its previous close of 83.89/$1, LSEG data showed.

The currency strengthened to 83.81 versus the US dollar during the day’s trading, but lost its gains as demand for dollars put pressure on the local currency.

The rupee is expected in a range of 83.75/$1 to 83.95/$1 tomorrow, according to foreign exchange traders. This week, traders will be looking at the US Personal Consumption Expenditures (PCE) price index due on Thursday, which is the Fed’s preferred inflation gauge.

The dollar index was at 100.7, hovering close to its lowest level since December, according to Reuters.

Federal Reserve Chair Jerome Powell on Friday endorsed a start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence that inflation is within reach of the U.S. central bank’s 2% target. “The time has come for policy to adjust,” Powell said.

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