Rupee ends little changed on likely dollar buying by RBI

The Indian rupee remained stable with the Reserve Bank of India intermittently buying US dollars, limiting any increase in the domestic currency against a weaker greenback. Exporters were also hedging dollar receivables at the same levels. The RBI is absorbing a large part of the dollar inflows in the market leading to forex reserves rising to $588.8bn. US inflation data due Wednesday will be monitored for signs that the Federal Reserve will decide to pause its rate and India’s inflation data later in the week will provide cues on the RBI’s next rate hike decisions.