Overview

• The Indian rupee has maintained stability despite volatility in the Asian forex market and a rebound in US Treasury yields, disregarding broader dollar movements.
• Non-deliverable forwards indicate the rupee remaining at 83.22-83.24 to the U.S. dollar, compared to 83.2150 in the previous session, and within the 83 to 83.30 range for several weeks now.
• Economic indicators such as weak US jobs data, manufacturing, and services data combined with low odds of a Fed rate hike in December reduced demand for the dollar, further solidifying rupee's stability.
• Demand from local oil companies and importers for U.S. dollars, and a lack of substantial deterioration in US activity story limited the rupee's rally, according to market analysts.
• Despite the resilience, the rupee underperformed compared to its Asian peers such as the Malaysian ringgit and Korean won that saw gains in the wake of the U.S. Fed rate stability.