The Indian rupee closed barely changed on Tuesday as dollar sales from state-run banks supported the currency even as most of its Asian peers weakened.
The rupee closed at 83.5075 against the U.S. dollar, against 83.4875 in the previous session. It hovered in a tight band of 83.4775 and 83.5175 during the session.
The dollar index was up 0.1% at 105.3 while most Asian currencies slipped, with the Thai baht, down 0.3%, leading losses.
Offers to sell dollars from state-run banks helped prevent a weakening of the rupee, traders said.
"A decisive break and close below 83.58 will open doors for 83.75," a foreign exchange salesperson at a private bank said.
The rupee had slipped to a record low of 83.5750 on April 19.
Meanwhile, U.S. Treasury yields edged lower in Asian hours, with the 10-year yield slipping to 4.46%. The 2-year Treasury yield declined 2 basis points to 4.81%.
The rupee "should remain stable" in the near-term and hover in its prevailing range given the lack of strong domestic or global cues this week, Gaurang Somaiya, a foreign exchange research analyst at Motilal Oswal Financial services said.
With limited U.S. economic data on tap this week, investors will focus on remarks from Federal Reserve policymakers for cues on when the central bank might begin to ease policy rates.
Markets are currently pricing in nearly two rate cuts by the Fed over 2024.
"A very quiet U.S. calendar this week, USD/JPY drifting higher, and perhaps some dovish developments in Europe," should keep the dollar index supported and it may head back to the 105.50/75 area," ING Bank said in a note.
The rupee closed at 83.5075 against the U.S. dollar, against 83.4875 in the previous session. It hovered in a tight band of 83.4775 and 83.5175 during the session.
The dollar index was up 0.1% at 105.3 while most Asian currencies slipped, with the Thai baht, down 0.3%, leading losses.
Offers to sell dollars from state-run banks helped prevent a weakening of the rupee, traders said.
"A decisive break and close below 83.58 will open doors for 83.75," a foreign exchange salesperson at a private bank said.
The rupee had slipped to a record low of 83.5750 on April 19.
Meanwhile, U.S. Treasury yields edged lower in Asian hours, with the 10-year yield slipping to 4.46%. The 2-year Treasury yield declined 2 basis points to 4.81%.
The rupee "should remain stable" in the near-term and hover in its prevailing range given the lack of strong domestic or global cues this week, Gaurang Somaiya, a foreign exchange research analyst at Motilal Oswal Financial services said.
With limited U.S. economic data on tap this week, investors will focus on remarks from Federal Reserve policymakers for cues on when the central bank might begin to ease policy rates.
Markets are currently pricing in nearly two rate cuts by the Fed over 2024.
"A very quiet U.S. calendar this week, USD/JPY drifting higher, and perhaps some dovish developments in Europe," should keep the dollar index supported and it may head back to the 105.50/75 area," ING Bank said in a note.