Neutral impactForex
Competing cues, caution ahead of RBI policy decision keep rupee nearly flat
Economic Times 4 hrs ago·4 Aug 2026, 11:20 am
The Indian rupee traded sideways on Tuesday as markets waited for the Reserve Bank of India's policy decision. Traders balanced foreign bank dollar sales with importer hedging demand, keeping the currency range-bound. Meanwhile, improved liquidity in the banking system helped lower the cost of locking in future dollar purchases.
Investors are closely watching the central bank's stance, as economists expect a hawkish tone despite the likelihood of holding interest rates steady. This cautious approach reflects the RBI's efforts to manage inflation risks while supporting growth. The broader market sentiment remains cautious, with equities facing pressure and bond yields drifting lower due to global shifts.
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- Category: Forex.
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