MUMBAI: The Indian rupee slipped to its weakest closing level on Monday, pressured by a decline in its Asian peers while likely intervention by the Reserve Bank of India ensured the currency did not weaken more.
The rupee closed at 83.9725 against the US dollar, after closing at 83.9550 in the previous session. The currency hovered in a narrow range between 83.95 and 83.97 during the session. The RBI likely sold dollars to limit further depreciation in the currency, traders said.
Most Asian currencies fell 0.1% to 0.8% while the dollar index edged lower to 103.1.
Traders expect the rupee to be rangebound ahead of the release of closely-watched US consumer inflation data on Wednesday, which is expected to shape expectations of when the Federal Reserve may begin to ease policy rates.
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