Rupee flat

The rupee closed flat in a dull trade on Thursday, as market participants stuck to the sidelines ahead of the central bank’s monetary policy decision.

The rupee remained unchanged at 115.61 against the dollar in the interbank market. “Investors are in wait-and-see mode ahead of the outcome of the State Bank’s third monetary policy review of the year, which is due on Friday,” a dealer said. Analysts expect a 25 to 50 basis points increase in May monetary policy statement. Increase in crude oil prices is likely to push inflation higher in the coming months.

Moreover, a staggering current account deficit shows more pressures on the currency and increased need to curtail domestic demand, analysts said. In the open market, the rupee continued on a downward trend since the start of this week. The rupee weakened to 118.50/119 against the dollar as compared to 118.10/118.40 in the previous session.