PSB dollar sales help rupee close flat at 95

Mumbai: The Indian rupee was nearly unchanged on Monday and closed at 94.99%, from its previous close of 95.00. Dollar sales from state run banks, likely on behalf of the central bank, and dollar demand for hedging kept the rupee in a tight range.

The currency traded from 95.03 per dollar and 94.72 on Monday. The one month forward premium stood at 4.10%, from 3.77% on Friday.

The one year forward premium was at 3.21%, from 3.15% on Friday.

The rupee depreciated nearly 11% in FY26. It has depreciated 0.17% in FY27 so far. However, at current levels, the rupee has appreciated 2.06% from its record low of 96.96 on May 20.

“There was an MSCI inflow of $800 million early in the morning, which kept foreign banks in the selling mode. However, in the afternoon, MSCI had outflows worth $2 billion, which took the rupee to a low of 95. 03,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors.

“The Reserve Bank of India then stepped in to sell dollars and ensure rupee closed stronger,” Bhansali said.

Markets now are looking at the US non farm payroll (NFP) data, expected on Friday. The NFP data is one of the most important variables considered by the US Fed when it comes to deciding on the trajectory of interest rates in the US.Additionally, traders are also focusing on the Reserve Bank of India’s monetary policy decision announcement and the governor’s commentary scheduled on June 3. The RBI is widely expected to keep the repo rate unchanged at 5.25%, according to an ET poll.