Indian Rupee Market Update

On Wednesday, the Indian rupee ended nearly flat against the dollar, closing at 90.9475 against the greenback. This outcome was influenced by maturing contracts in the non-deliverable forwards market, which spurred dollar demand and offset the positive impact of modest inflows and gains in Asian peers.

Despite expectations of elevated dollar demand related to NDF maturities this week, appetite to wager against the currency has diminished due to the expectation that the Reserve Bank of India will intervene to curb sharp falls. State-run banks were intermittently spotted selling dollars above the 90.95 mark.

The 90.60–90.80 range continues to act as an important support zone for USD/INR. As long as this area remains intact, the overall trend points to a steady climb toward the 91.20–91.50 levels. The Nifty 50, a blue-chip index, rose 0.2% on the day, while Asian currencies were up between 0.2% to 0.5%.

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The dollar index was little changed at 97.8. Global markets are awaiting the quarterly earnings report from Nvidia, an AI chipmaker, set to release later in the day. Analysts believe the firm's heavy weighting in U.S. equity markets means the results could have a spillover impact on global risk appetite as well.