Rupee stays flat

The rupee remained stable against the dollar in the interbank market on Wednesday, dealers said. In the interbank market, the rupee closed at 154.25 against the greenback, unchanged from the previous close.

The local currency also ended firmer at 154.30 versus the greenback in the open market. Dealers said the local unit remained stable due to ample supply of the dollars in the market. “The supplies were enough to cater to the market requirement,” a foreign exchange dealer said.

Traders expect the local currency to stay range-bound and trade in the range of 154.20 and 154.30 against the dollar in the coming sessions.

Lower current account deficit and the ongoing Saudi oil facility reduced the payments pressure in the interbank market, dealers said. Furthermore, increased financial flows via foreign portfolio investment also helped the rupee stabilise.

The possibility of further contraction in the current account deficit, amid compression in imports and expected pick up in exports growth also boosted the sentiment in the forex market. The current account deficit fell 72 percent to $2.6 billion in the seven months of the current fiscal year.