The rupee ended flat at 83.90 against the US dollar amid steady month-end demand

The Indian rupee was almost flat on Monday and closed at 83.90 against the US dollar as dollar demand from domestic banks and corporates remained steady due to end-of-month demand, traders said.

The local currency weakened by 1 paise, ending at 83.90 against the US dollar, against its previous close of 83.89/$1, LSEG data showed.

The currency strengthened to 83.81 against the US dollar during the day’s trading, but lost its gains as demand for the dollar pressured the local currency.

According to foreign exchange traders, the rupee is expected to remain in the range of 83.75/$1 to 83.95/$1 tomorrow. This week, traders will watch the US Personal Consumption Expenditures (PCE) price index on Thursday, the Fed’s favorite inflation gauge.

The dollar index was at 100.7, near its lowest level since December, according to Reuters.

Federal Reserve Chairman Jerome Powell backed the start of interest rate cuts on Friday, saying further cooling in the job market would be undesirable and expressing confidence that inflation was within reach of the US central bank’s 2% target. “It’s time to adjust the policy,” Powell said.