Rupee Closes Flat Against U.S Dollar After RBI Status Quo

The Indian rupee closed flat against the U.S. dollar after the Reserve Bank of India kept policy rates unchanged at 6.5%.

The local currency closed flat at Rs 82.96 against the U.S dollar. It closed at Rs 82.97 on Wednesday, according to Bloomberg data.

The MPC voted to remain focused on withdrawal of accommodation. MPC voted to keep stance unchanged with a 5-to-1 majority.

"As of Feb 7, Indian rupee remained stable compared to emerging market peers and few advanced economies," the RBI governor said while presenting the monetary policy statement.

"Indian rupee exhibited lowest volatility in FY24. Relative stability of rupee, despite stronger US dollar, reflects strength, stability of economy," he added.

"The dollar/rupee finds support around Rs 82.80. The currency is likely to hover between Rs 82.70 and Rs 83.30," Amit Pabari, managing director at CR Forex Advisors said.

While levels above Rs 83.00 are deemed a dollar selling zone, those around Rs 82.70-82.80 is dollar buying levels for near-term payable, he said.

"The Indian rupee is expected to remain rangebound today as inflows continue and RBI continues to intervene to prevent too much of upside for the rupee", Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors said.