Rupee steadies as exporters book gains ahead of the festive season
Dealers expect a narrow trading range for the rest of the week as dollar demand from importers eases.
Quick read
- The currency ended the session almost flat against the dollar
- Exporters sold dollars to lock in gains before Diwali
- Traders are watching crude prices and foreign fund flows
Mumbai: The rupee held steady against the US dollar on Wednesday as exporters sold dollars to lock in gains ahead of the festive season, offsetting demand from oil importers.
Currency dealers said the local unit is likely to trade in a narrow band for the rest of the week unless crude oil prices move sharply.
Foreign portfolio investors were net buyers of Indian shares for a third straight session, which also supported the currency, according to provisional exchange data.
Market participants will next look at monthly trade figures, due early next week, for signs of how festive demand is shaping imports.