Rupee expected to trade in narrow range of 94.50-96.50 as RBI steps up intervention

The rupee is expected to trade within a narrow range over the medium term. Stepped-up Reserve Bank of India interventions have helped curb volatility significantly. Stronger dollar inflows via the FCNR(B) scheme also contributed to this stability. The central bank's substantial foreign exchange reserves provide confidence in its intervention capabilities. Traders anticipate subdued near-term volatility as the RBI manages market imbalances.