The Indian rupee remained nearly flat on Monday, trading at 83.93 against the U.S. dollar, as market expectations grew that the Reserve Bank of India (RBI) would prevent the currency from falling below the 84 mark. This comes as most Asian currencies declined due to concerns over a potential slowdown in the U.S. economy.
Despite the global market trend, the Indian central bank has been actively supporting the rupee to keep it from slipping past 84, according to a foreign exchange trader at a state-run bank. While there is a slight chance that the currency could dip below this level, drastic moves are considered unlikely.
This week, the rupee is expected to be influenced by inflows from local IPOs, along with monitoring U.S. consumer inflation data set to be released on Wednesday. Societe Generale, in a note, mentioned that the dollar-rupee pair is likely to decline gradually, with predictions of the pair moving to 83.30 by the end of the year.
In September, overseas investors have bought Indian stocks worth $1.3 billion, providing additional support for the rupee.
