BENGALURU: The Indian rupee ended almost flat on Tuesday after being held in a narrow range through the session, as possible dollar inflows negated the impact of a strong dollar index.
The rupee ended at 82.2550 against the dollar, compared with its close of 82.2450 on Monday. There were some possible dollar inflows on Tuesday that offset the strength in the dollar index, traders said.
The rupee has been trading in a range of 81.60-82.85 over the past few months, finding support from foreign inflows into equities, but the currency has seen limited upside due to the dollar-buying intervention from the Reserve Bank of India.
There might be some depreciation in the rupee to around 82.50 levels, said Dilip Parmar, research analyst at HDFC Securities, adding that the trend may be temporary.
The dollar index hit a three-week high on Tuesday, rising 0.25%. Foreign inflows into equities totalled $5.5 billion in July, on a net basis. The rupee is also likely to be pressured lower due to rising oil prices, which could raise the demand for dollars from importers, analysts said.
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