Indian rupee holds steady amidst outflows

The Indian rupee remained stable on Monday despite pressure from equity-related outflows and a decline in regional currencies. The Reserve Bank of India’s strong control over the currency prevented significant losses.

The rupee closed at 83.9775 against the dollar, almost unchanged from the previous close of 83.9725. The RBI instructed banks to avoid heavy betting against the rupee, which has been hovering near its record low of 83.9850 in recent trading sessions. The rupee’s stability above 84 is due to the central bank’s interventions.

Factors like outflows from equities, high oil prices, and a strong dollar have weighed on the rupee, leading to a 0.3 per cent decline last week.

The Sensex and Nifty 50 indices both dropped by about 0.8 per cent on Monday, marking their sixth consecutive day of losses.

Attribution: Reuters

Subediting: M. S. Salama