Rupee Trades Within Narrow Range Amid RBI Intervention and Global Events
The Indian rupee remained in a tight trading range on Wednesday due to persistent intervention by the Reserve Bank of India (RBI) and steady importer demand for dollars. The USDINR traded between 95.37 and 95.87, with S&P affirming India's sovereign ratings at 'BBB/A-2' with a stable outlook.
India's economic growth slowed to 7.1% in the April-June quarter from a year earlier, reflecting softer private investment. The rupee's trading range was also influenced by global events, including the Strait of Hormuz crisis and the euro zone's economic data.
The Bank of England's Pill warned of 'insidious' inflation pressures, while the UK Services PMI rose to 52.8 in August from 52.1 in July. The Japanese yen remained range-bound amid rising fiscal concerns and elevated oil prices linked to the Middle East conflict.