Rupee holds steady amid 'mild' Dollar sales from state-run banks

Rupee versus Dollar: The Indian Rupee maintained its equilibrium on Thursday, displaying marginal movement as Dollar sales from state-run banks counteracted demand from local corporates and a slight softening in broader Asian currencies.

As of 11:10 am, the Rupee stood at 83.3625 against the US Dollar, almost unchanged from its previous close of 83.3725. Despite opening at 83.3175, the local unit experienced early fluctuations before settling near its prior day's level.

The Rupee had recently plummeted to a historic low of 83.45 during the concluding minutes of Wednesday's trading session, only to stage a recovery, largely attributed to potential intervention by the Reserve Bank of India, according to market analysts.

State-run banks were observed to be "mildly" offering the Dollar in the initial hours of Thursday's session, as reported by four traders familiar with the matter. While such activity sparked speculation of RBI intervention, a senior FX trader at a private bank cautioned against conclusive assertions, pointing out that banks may have their own year-end activities to address.

Given that Thursday marks the culmination of the current financial year, currency markets are bracing for closure on Friday and Monday, with traders navigating potential year-end dynamics alongside market fluctuations.

Amid these developments, the Dollar index registered a modest decline to 104.34, accompanied by a slip in most Asian currencies, with the Malaysian ringgit leading losses with a nearly 0.3 per cent decline.

Arnob Biswas, head of foreign exchange research at SMC Global Securities, offered insights into the Rupee's expected trajectory, suggesting a range-bound movement between 83.25 and 83.45 throughout the day.

Meanwhile, observations from the US Federal Reserve have garnered attention, particularly remarks from Federal Reserve Governor Christopher Waller. Waller's assessment of recent data has led to a dip in expectations for a US rate cut in June, reflecting a cautious stance aimed at maintaining inflation within sustainable bounds.

(With Reuters inputs.)