Indian rupee ends flat as RBI intervention, portfolio flows blunt Fed hike impact

According to Business Recorder, the Indian rupee finished Thursday essentially unchanged at 95.93 per US dollar, compared with 95.9550 at the previous close. It had dipped below the 96 level early in the session but recovered, which traders linked to likely central bank intervention and inflows tied to a global equity index rebalancing. The move came while most regional currencies weakened.

Asian currencies mostly fell between 0.1 and 0.6 per cent after the US Federal Reserve lifted rates and reiterated its focus on curbing inflation. That step pushed short-dated US yields to their highest in more than two years. The dollar index held above 100 after gaining close to 0.7 per cent in the prior session.

ING said the dollar could keep a firmer footing after the Fed signalled a further hike by year-end, and that oil prices were supporting dollar momentum. Brent crude slipped about 1 per cent to $104.8 a barrel on reports of extra Saudi cargoes routed through Oman. Separately, traders said the RBI likely used dollar-rupee swaps and an open market debt sale to drain surplus rupee liquidity from banks.