Rupee falls on RBI intervention, dollar demand

The rupee was trading at 59.2650/2700 compared with its previous close of 59.1525/1625 after likely intervention from the RBI and on dollar demand from importers.

Traders expect the pair to be range bound, while closely watching foreign fund inflows into local shares.

Earlier, the pair had briefly trimmed gains after the RBI kept interest rates on hold, but the RBI was spotted buying dollars through state-owned banks starting around 59.16 rupee levels.

The market cited little impact from the central bank`s move later to allow banks to equally spread out additional provisioning on unhedged foreign currency exposure in the current fiscal year.

The pair is seen trading in a 59.20 to 59.40 range during the session.