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The Reserve Bank of India has been instrumental in keep volatility muted, intervening regularly in spot, non-deliverable forwards and futures, according to traders. "You have U.S. yields, oil risk, a well supported dollar and portfolio outflows. All through this, the rupee has basically done nothing," an FX salesperson at a bank said.
The FOMC also stressed that the long-term projections are inherently uncertain and subject to change as the financial atmosphere is highly dynamic and contains numerous potential risks that could influence future outcomes, Bhansali said.
The RBI (Reserve Bank of India) needed to make its presence felt just before open, or we would have seen a big move on the upside (on USD/INR)," a trader said.
At the interbank foreign exchange market, the local unit opened at 83.02 against the US dollar and moved in a range of 82.98 and 83.20.
The rupee was quoted at 83.0250 to the U.S. dollar, down about 0.1% from the previous session. On the interbank order matching system, before the normal OTC opening time of 9.00 a.m., the rupee had dropped to 83.16. The RBI likely sold dollars to pull the rupee back near the 83 level.