Rupee Holds Near 90.65; What’s Supporting the Currency Today?

Mumbai | February 18

The Indian rupee opened at 90.65 against the US dollar on Wednesday, slightly stronger than Tuesday’s close of 90.67. The currency traded in a narrow range as softer Asian currencies were balanced by continued support from the Reserve Bank of India (RBI).

Overseas currency indicators suggested the rupee would open in the 90.66–90.70 range, close to the previous close, pointing to limited volatility at the start of trade.

RBI Support Seen Around 90.70-90.80 Levels

Market participants said the RBI has been selling dollars in the 90.70–90.80 band in recent sessions, effectively capping further gains in the dollar/rupee pair.

Traders said this signals that the central bank is not comfortable with the rupee weakening beyond those levels for now. The move has reduced speculative bets on a rise toward 91.

Focus on FOMC Minutes and Global Cues

Elsewhere, most Asian currencies edged lower, while the dollar index hovered near 97.20.

Investors are awaiting the minutes of the Federal Open Market Committee (FOMC) meeting later in the day for clarity on the US interest rate outlook. Markets are currently pricing in around two rate cuts this year, with June seen as a possible starting point. The first estimate of US fourth-quarter GDP is due on Friday.

Stronger US data could support the dollar further, while softer readings may ease pressure on emerging market currencies, including the rupee.

On the domestic front, recent trade agreements with the United States and the European Union, along with a growth-focused Union Budget, continue to support investor confidence.

For now, traders expect the rupee to remain range-bound unless global dollar strength increases or the RBI changes its approach in the currency market.

For more market and corporate updates, follow PL Capital.