MUMBAI: The rupee pared initial losses and settled for the day on a flat note at 76.27 (provisional) against the US dollar on Monday amid weakening of the greenback in international market.
Forex traders said the rupee is trading in a narrow range as losses in the greenback supported the rupee, while weak domestic equities weighed on the local unit. Moreover, investor confidence strengthened after the minutes of the central bank's policy meeting revealed that the RBI will use any instrument necessary to revive growth and preserve financial stability.
"The Reserve Bank will continue to remain vigilant and will not hesitate to use any instrument - conventional and unconventional - to mitigate the impact of Covid-19, revive growth and preserve financial stability," Reserve Bank of India (RBI) Governor Shaktikanta Das said.
At the interbank foreign exchange market, the local currency opened at 76.32, but witnessed heavy volatility and touched a low of 76.45 against the American currency. The domestic unit pared the losses and finally settled at 76.27 against the greenback, up 1 paise over its previous close.
The rupee had settled at 76.28 against the US dollar on Thursday. Forex market was closed on April 10 on account of Good Friday.