Remit now? Indian rupee at 22.9 per UAE dirham amid volatility trends ahead of US election

The Indian rupee was largely flat on Thursday with volatility expectations signalling that the currency is expected to remain rangebound, even as its regional peers brace for swings heading into the U.S. presidential election.

The rupee was at 84.0625 (Dh22. 905) against the U.S. dollar as of 11:00 a.m. IST, compared with its close at 84.08 in the previous session.

Gains in most of its Asian peers offered only marginal relief to the rupee. Regional currencies were up between 0.1% to 0.3%.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

The local currency has been pinned near record low levels for much of the week amid a rise in U.S. bond yields on the back of heightened odds of a Donald Trump victory in the upcoming U.S. election and sustained outflows from local equities.

Routine interventions by the Reserve Bank of India have helped the rupee avert sharp declines despite the multiple pressures, traders said.

The central bank's interventions have also contributed to keeping the rupee's near-term implied volatility subdued even as those of its peers have risen in the lead-up to the election.

The offshore Chinese yuan's 1-month implied volatility has risen to 7.5% from 6.7% at the end of last month, while that of the rupee's has been largely stable near 2%.

• UAE: ADNH Catering shares close unchanged on debut