Indian rupee steady amid outflows, dollar sales

The Indian rupee closed largely unchanged on Thursday, despite the strengthening of Asian currencies, as outflows from local equities and state-run banks’ dollar sales offset each other.

The rupee ended at 84.0775 against the US dollar, compared to its previous close of 84.08. Earlier this week, the rupee had hit a record low of 84.0825.

The dollar index declined 0.2 per cent to 104.1, while Asian currencies were mostly stronger on the day. However, the benchmark Indian equity indices, the BSE Sensex and Nifty 50, declined for the fourth consecutive session.

Local stock outflows pressured the rupee, but dollar support from state-run banks limited the decline, as per a trader at a major private bank. The trader indicated that these interventions were likely on behalf of the Reserve Bank of India (RBI).

Attribution: Reuters

Subediting: M. S. Salama