The Indian rupee ended flat against the U.S. dollar after the RBI kept policy rates unchanged.
The local currency closed flat at 83.25 against the U.S. dollar on Friday after having strengthened by about 7 paise to Rs 83.19. It opened at Rs 83.21 on Friday.
The rupee closed at Rs 83.26 on Thursday, according to Bloomberg data.
"The rupee received some support from the recent weakness in crude oil prices, which helped it stay above the Rs 83.30 mark," Jateen Trivedi, vice president—research at LKP Securities, said.
"Looking ahead, the next major event for the rupee is the Reserve Bank of India's policy meeting scheduled for Oct. 6. It is widely anticipated that the central bank will leave interest rates unchanged, with expectations of maintaining the current rate of 6.50%. This event will likely influence the rupee's direction in the near term," Trivedi said.
"Given the current market dynamics and the upcoming RBI policy meeting, the rupee is expected to continue trading within a range of Rs 83.05-83.35," he said.
"DXY declined below 106.50 after retreating from monthly highs. US Treasury yields also edges lower, with the 10Y UST yields dropping to 4.71%. Brent Crude prices seen consolidating around $85/bbl. Eyes on India's MPC (expected to be Status quo) and U.S. NFP data. For USDINR, 83.05 acts as a support while 83.30 a resistance", Kunal Sodhani, vice president, Shinhan Bank (Global Trading Centre), said.
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