The Indian rupee opened little changed against the US dollar on Tuesday, mirroring the relatively steady greenback. The local currency started trading at Rs 84.65 per dollar, compared to the previous close of Rs 84.076.
The rupee is expected to trade in the Rs 83.80-84.20 range with RBI interventions providing crucial support on the downside, said Amit Pabari, analyst at CR Forex Advisors.
RBI data released on Friday shows a dip in India’s forex reserves for the third consecutive week, reflecting the apex 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,” Pabari said.
