Indian rupee subdued, barely changes from last close

The Indian rupee was little changed on Tuesday, tracking subdued moves in its Asian peers, with traders expecting the local currency to trade with a slight depreciation bias heading into the US Federal Reserve's policy decision.

The rupee was at 22.749 against the US dollar as of 8.45am (UAE time), barely changed from its previous close at 22.743.

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The currency logged its sharpest intra-day fall in more than two weeks on Monday, pressured by dollar demand from importers and a government debt outflow, traders said.

The rupee "should move below 83.50 (against the US dollar)" on Tuesday but how far it falls will depend on whether the central bank steps in to cap losses, a foreign exchange trader at a state-run bank said.

The dollar index was up 0.1 per cent at 105.8, while most Asian currencies were rangebound. US bond yields dipped on Monday, with the 10-year Treasury yield down 5 bps at 4.60 per cent.

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