Mumbai: The rupee held steady, close to 9-year peaks, on 25 October, though trading was thin as dealers held back from building large positions ahead of a Sebi board meeting that could influence capital flows.
At 10:25 am, the partially convertible rupee was at 39.57/58 per dollar, almost unchanged on Wednesday’s finish of 39.58/59. It hit 39.27 earlier this month, its highest since March 1998.
“The markets are quite edgy about the Sebi meeting today though there are unlikely to be any negative surprises,” said a senior dealer with a foreign bank.
The regulator’s board meets today and is likely to consider proposals to tighten rules on participatory notes used by unregistered foreign investors to buy local equities. Foreign inflows into India’s fast-rising stock market have been a key driver of the rupee, which is up nearly 12% this year.