The Indian rupee closed virtually unchanged on Wednesday, settling at 96.2550 per dollar, as the currency remained trapped near its lowest level in more than a month.
Despite some supportive flows, the greenback maintained its dominance against the rupee, reflecting the ongoing pressure from elevated energy import costs.
Market participants noted that modest portfolio inflows and increased demand from merchants for foreign currency provided a floor for the rupee.
Market participants noted that modest portfolio inflows and increased demand from merchants for foreign currency provided a floor for the rupee.
However, these positive factors were effectively blunted by the continued drag from oil imports.
The balance of forces resulted in a session where the currency hovered around its recent lows before finishing flat, indicating a lack of decisive momentum in either direction.
This development follows a period of volatility for the Indian currency.