The Indian rupee was little changed on Thursday, despite Asian peers moving higher, as U.S. dollar demand from importers and local oil companies offset a softness in the greenback. The rupee was at 83.2350 against the U.S. dollar as of 11:30 a.m. IST after closing at 83.24 in the previous session.
The dollar index fell to 106.62, down about 0.12%. Asian currencies rose, with the Korean won leading gains. U.S. Treasury yields eased after a relentless climb to multi-year highs earlier in the week. The yield on the 10-year Treasury was last quoted at 4.71%, down from 4.88%, the highest level since August 2007 hit on Wednesday.
The RBI has routinely intervened to support the rupee and prevent a move towards record low. The currency hit a lifetime low of 83.29 in October 2022. The rupee is likely to gain only modestly and continue to hold around 83.00/U.S. dollar levels over one to three months as RBI intervention is seen holding the unit in a tight range, according to a Reuters poll. Focus now turns to the RBI’s monetary policy decision due on Friday. The central bank is widely expected to keep rates unchanged.