Rupee Trades in Narrow Range Against US Dollar

 

December 18, 2025

The Indian rupee traded within a narrow range against the US dollar as balanced capital flows and central bank intervention limited sharp movements. Currency traders said the RBI actively managed volatility to prevent excessive depreciation. Rising crude oil prices and strong dollar demand from importers weighed on the rupee, while foreign portfolio inflows into debt markets offered support. Analysts noted that India’s comfortable forex reserves provided a buffer against external shocks. The rupee’s stability was seen as positive for inflation management, especially for imported goods. Market participants expect the currency to remain range-bound unless there is a significant shift in global interest rate expectations.