FX.co ★ Indian Rupee Range-Bound Near 1-Month Highs

The Indian rupee held steady, trading slightly higher at approximately 88 against the US dollar, as it lingered near its highest point in a month. This stability followed last week's assertive interventions by the Reserve Bank of India, which led to the currency's most significant weekly improvement in nearly four months. The central bank's unexpected dollar sales initiated a recovery from previous record lows. However, demand from importers has somewhat limited this upward movement, keeping the rupee within a specific range. Market sentiment is also shaped by possible trade relations between the US and India, especially after President Trump mentioned that Prime Minister Modi promised to stop importing Russian crude, although this claim has not been verified by the Indian authorities. With foreign exchange markets closed for the Diwali holidays on Tuesday and Wednesday, investors are keenly observing any trade news and further actions by the RBI to determine if the recent rally can be maintained. Analysts suggest that if the currency surpasses the 88 threshold, it could encourage new long-dollar positions, testing the central bank's determination.