Rupee sees range-bound trade in morning session

Rupee holds steady within RBI-defined range, expected to trade between 83.70 to 84.05, amid improved risk sentiment.

The Indian rupee witnessed range-bound trade in the morning session on Thursday (September 12, 2024) and appreciated by 2 paise to 83.97 against the U.S. dollar, amid a positive trend in domestic equities and foreign fund inflows.

Forex traders said the rupee continues to hold steady within a well-defined range on active intervention by the Reserve Bank of India (RBI).

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.97 against the American currency, registering a rise of 2 paise over its previous close.

On Wednesday, the rupee settled 1 paisa lower at 83.99 against the American currency.

"The central bank has been steadily absorbing inflows, and unless the RBI eases its grip, the rupee is likely to stay within this range," CR Forex Advisors MD Amit Pabari said.

In the near term, the rupee is expected to trade within a narrow band of 83.80 to 84.05, while the medium-term outlook slightly broadens the range to 83.70 to 84.05, Pabari added.

Forex traders said risk sentiment has improved post the U.S. Aug CPI data. The US Aug headline CPI came in lower than expectations at 2.5% year-on-year. Core CPI came in line with expectations at 3.2%.