The rupee ends flat, with the NDF’s maturity-linked dollar bids blunting modest inflows

The Indian rupee finished almost flat on Wednesday as demand for the dollar, fueled by expiring contracts in the non-deliverable futures market, blunted the positive boost from modest inflows and gains among Asian peers.Despite expectations of increased dollar demand linked to NDF maturities this week, willingness to bet against the currency has also dulled on expectations that the Reserve Bank of India will intervene to curb sharp declines.

On the day, the rupee closed at 90.9475 against the dollar, virtually unchanged from the closing rate of 90.95 in the previous session.

State-owned banks were occasionally spotted selling ⁠dollars above ‌90.95, said a trader at a major private lender.

“The 90.60-90.80 range continues to act as a key support zone for USD/INR. As long as this area remains intact, the overall trend points to a steady climb towards the 91.20-91.50 levels,” said Amit Pabari, managing director at FX consultancy CR Forex.

Indian equity benchmarks also started the day strongly, rising almost 1% before paring gains to end the day modestly higher. The blue-chip Nifty 50 rose 0.2%.

Asian currencies rose between 0.2% and 0.5%, with the Chinese yuan rising to a 34-month high on Wednesday. The dollar index, meanwhile, was little changed at 97.8.

Global markets are awaiting AI chipmaker Nvidia’s quarterly earnings report, which will be released later today. Analysts believe the company’s heavy weighting in US stock markets means its results could also have a spillover effect on global risk appetite.