Rupee stable

The rupee closed firm against the dollar in the interbank market on Monday, dealers said. The rupee ended at 128.50 against the dollar as compared to the previous closing of 128.49.

The local currency was largely stable. It traded in a narrow range of 128.48/52 due to routine dollar demand from importers. In the kerb market, the rupee closed weaker at 130.80 against the dollar. It settled at 130.50 on Friday.

“The uncertainty over further currency depreciation is still there. The concerns over hefty current account deficit hit investors' sentiment,” a dealer said.

“There are speculations among the market participants that the local unit would weaken further to 135 after July 25.” The country will hold general elections on Wednesday.