The rupee was trading steady at 54.35 against the dollar in intra-day trade as the gains were capped by higher inflation data.
According to government data, the Wholesale Price Index-based inflation rose to 6.84 per cent in February from 6.62 per cent in January. This will be one of the important determinants for RBI’s policy decision.
Inflation, especially on the retail side, remains stubbornly high in Asia’s third largest economy.
The rupee opened weak at 54.35 against the dollar from the previous close of 54.30. It fell further to 54.53 on oil-related dollar demand and inflation data.
Currency markets will be looking for cues from RBI policy action in its monetary policy review on March 19.
The intra-day range for the rupee is expected between 54.23-54.51 levels, according to India Forex Advisors.
