Dealers says that the excessive volatility of the last few weeks has been dramatically curbed and a steady trend has been prevailing in the last couple of days. Equity markets though have remained volatile, but it has had little bearing on the rupee.
The Reserve Bank of India has also been absent from the forex markets, in the absence of volatility. However, things could change early next week as results from the elections in Greece are likely to add to volatility. Also, the RBI is expected to announce the Monetary Policy Review on Monday and this could see fresh demand for the dollar.
Meanwhile, the Indian indices were trading higher today after yesterday's huge bout of profit booking. The BSE Sensex was up 90 points at 11 am IST.