The rupee is likely to remain in the Rs 94.5-96 per US dollar range in the near term, with large dollar inflows through FCNR deposits and external commercial borrowings (ECBs) failing to translate into commensurate appreciation as the funds have largely been added to the Reserve Bank of India's reserves, a Bank of Baroda research report said.
The report said the rupee's movement has increasingly been shaped by a combination of fundamentals, RBI intervention and market sentiment, making it difficult to attribute currency movements to any single factor.
