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Rupee trades in a tight range as optimism lifts sentiment
The rupee held within a narrow range as renewed optimism over an India‑US trade deal, along with growing hopes that a looming government shutdown in the US could end soon, supported the domestic unit at lower levels, forex traders said.
Key factors behind the move
- Trade deal prospects: Positive developments in talks between India and the US boosted risk appetite and reduced pressure on the rupee.
- US political clarity: Signs that a government shutdown may be avoided helped calm markets and supported emerging market currencies.
- Range trading: With no single factor dominating, the currency stayed within a defined band as traders took a cautious stance.
Market reaction and outlook
Traders described the market as steady but watchful. The combination of improved bilateral trade sentiment and reduced near‑term US political risk limited sharp declines in the rupee. That said, the currency’s movement is likely to remain sensitive to fresh updates on trade negotiations and any shifts in global risk appetite.
What to watch next
- Concrete progress or statements on an India‑US trade agreement
- US congressional developments around funding and the shutdown risk
- Global risk sentiment, dollar moves and foreign portfolio flows
Overall, the rupee’s near‑term path looks tied to headlines and sentiment. Until clearer policy or trade signals emerge, expect the currency to trade cautiously within a range.