Rupee Holds Steady Amid Foreign Inflows

The Indian rupee closed flat at 84.29 against the US dollar, aided by foreign fund inflows despite a strong dollar. Traders await FOMC minutes for further cues. Strength of the dollar and rising crude prices may affect India's trade balance.

The Indian rupee managed to hold its ground against the US dollar, closing at 84.29, as sustained inflows from foreign funds bolstered the currency amidst a strong greenback, according to forex traders.

Market participants are keenly watching the release of the Federal Open Market Committee's minutes to gain further insight. The rupee had opened at 84.27, reached an intra-day high of 84.22, and a low of 84.35, before stabilizing to its previous session's level.

Praveen Singh, Associate VP at Sharekhan, expressed that the USD-INR pair is expected to trade between 84 and 84.50 in the near term. Rising crude oil prices and a robust American currency are posing potential challenges to India's trade balance.

(With inputs from agencies.)