By Jaspreet Kalra
MUMBAI, October 1 (Reuters) -The Indian rupee was flat on Wednesday with traders pointing out that a near-term floor for the currency appears to be forming near the 88.80 per U.S. dollar mark, a level marked by frequent interventions by the Reserve Bank of India.
The RBI was likely active in early trading on the day as investors awaited the central bank’s monetary policy decision due at 10:00 a.m. IST.
A majority of economists polled by Reuters expect the central bank to keep rates unchanged but traders are split over whether the central bank would opt for a rate cut to support growth or choose to keep powder dry.
The rupee was at 88.77 against the U.S. dollar as of 9:15 a.m. IST, little changed from its close at 88.7875 in the previous session.
The currency had dipped to its all-time low of 88.80 on Tuesday but its intra-day decline was marginal with traders pointing to consistent dollar-sales from state-run banks.
The rupee has been under pressure over the last month after steep U.S. tariffs on Indian exports went into effect while tightening of immigration policies sparked worries over a hit to trade, remittance and portfolio flows.
Foreign investors net sold $2.7 billion of local stocks in September, extending their selling streak for a third straight month and putting 2025 on course for record foreign withdrawals, according to stock depository data.
“With the dollar on the weaker side, even a small positive—such as relief on tariffs—could flip the mood and spark a sharper rupee appreciation,” said Amit Pabari, managing director at FX adviosry firm CR Forex.
India’s benchmark equity indexes, the BSE Sensex and Nifty 50 were little changed on the day and the yield on the country’s 10-year benchmark bond edged lower to 6.5664%.
Elsewhere, the dollar index was flat at 97.82 while Asian currencies were flat to slightly lower.
(Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala)
