MUMBAI: The Indian rupee closed nearly flat on Tuesday, tracking largely subdued price action in its Asian peers, as investors awaited comments from the Federal Reserve Chair for cues on the future path of US interest rates. The rupee ended at 83.4850 against the US dollar, barely changed from its close at 83.4925 in the previous session.
Indian state-run banks were “active on both sides,” like on Monday, which along with mostly quiet price action in Asian currencies, kept the rupee in a tight range, a foreign exchange trader at a foreign bank said.
The rupee lingered in the 83.4775-83.51 band through the day’s session. The currency has maintained an under 10 paisa intra-day trading range so far in July.
Fed Chair Jerome Powell will deliver his semi-annual testimony on monetary policy in front of US lawmakers on Tuesday and Wednesday. His remarks may offer fresh cues on the timing of Federal Reserve rate cuts after a string of recent data, including a soft jobs report, helped drive up the odds of September rate reduction to over 75% from nearly 70% last week, according to CME’s FedWatch tool.
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