The Indian rupee opened flat against the US dollar on Friday. The local currency started trading at Rs 84.0750, compared to the previous day's close of 84.0762.
In the short term, rupee is expected to trade within a narrow range of 83.80 to 84.20, with a bias toward the lower end, said Amit Pabari, managing director at CR Forex Advisors.
The recent pressure on the rupee, trading near its all-time low, has come from foreign equity outflows from India and the greenback's strength globally.
However, the 84.10 mark appears to be a crucial support level as the Reserve Bank of India actively steps in to manage volatility, according to Pabari. "This intervention is evident in the Rupee’s relative stability, making it one of the least volatile currencies among emerging markets recently. On the macroeconomic front, India continues to show promising growth," he said.
The dollar traded near three-month high against major currencies amid growing bets of a second Trump presidency and US economic data that eased recession fears. The dollar index, which measures the strength of the greenback against a basket of six currencies, stood at 104.07 (up 0.1%) while US 10-year bond yield was steady but at 4.18%.
Brent crude oil prices edged higher by 0.22% to $74.54 per barrel.
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