Rupee stable

The rupee maintained its overnight levels against the dollar in the interbank market on Tuesday due to dull activity, currency dealers said.

The rupee closed steady at 110.55 to the dollar, unchanged from Monday’s close. The domestic currency stayed range-bound due to persistent sluggish activity in the official market.

Many traders expect the rupee to remain stuck in the tight ranges of 110.52 and 110.55 this week in the wake of normal importer demand. Investor sentiment was impacted by the news of proposing $256 million in civilian assistance and $80 million in military aid by the US to Pakistan. However, the local unit continued to march downward in the kerb trade due to increase in foreign exchange demand. The rupee weakened to 111.80 and 112.10 for buying and selling against the dollar in the open market.