The Indian rupee remained steady against the US dollar on Wednesday, despite the yuan s depreciation and other Asian currencies weakening. Predictions of inflows into Indian equities later in the session aided the rupee, as the MSCI Index was set to be rebalanced.
The Indian rupee closed at 81.85 per dollar, down 18 points from its previous close of 81.67 on dollar demand from importers and recovery in crude oil prices.
Forex traders said sustained foreign fund outflows and concerns over rising COVID-19 cases in China also weighed on investor sentiments.
At the interbank foreign exchange market, the local unit opened at 81.81 and later witnessed
Tuesday's closing rate of the rupee against the US dollar was 81.67, up 12 paise as the greenback depreciated from its recent highs.
The local unit against the US dollar started out at 81.72 on the interbank foreign exchange market and fluctuated between an intraday high of 81.64 and a low of 81.83.