The Indian rupee saw slight gains against the US dollar on Tuesday, as traders awaited the Reserve Bank of India's policy decision. The rupee was quoted at 82.6125 to the dollar as of 11:08 a.m. IST, up from the previous session's 82.67.
The USD/INR pair has been unable to establish a clear direction, with minimal discernible patterns in support and resistance zones, according to Anindya Banerjee, head of research for foreign exchange and interest rates at Kotak Securities.
While the RBI's rate decision on Thursday could inject some volatility, a spot trader at a private bank said it was unlikely to change the current status quo on USD/INR. The US dollar is struggling against major peers, following data that indicates the Federal Reserve rate hike cycle is impacting service activity, with U.S. yields falling and rupee forward premiums rising accordingly.
