The Indian rupee closed virtually unchanged on Thursday, settling at 95.68 per U.S. dollar, as conflicting market forces neutralized directional momentum.
The currency remained trapped in a narrow trading band, unable to break out despite persistent headwinds from corporate foreign-exchange demand and sustained volatility in global oil prices.
The Reserve Bank of India (RBI) intervened to stabilize the market, likely selling dollars to counteract the rupee's depreciation pressure.
This official support helped offset the drag from corporate entities seeking to repatriate funds or service external debt, which typically drives demand for the greenback.
The central bank's actions underscore its commitment to managing excessive volatility rather than allowing a free-fall, even as the currency hovers near its weakest levels in over a month.
Oil price swings continued to weigh on the rupee's outlook.