Mumbai: The Indian rupee is likely to remain stuck in a narrow band as foreign outflows and strong demand for dollars from importers continue to weigh on the currency. Traders say the Reserve Bank of India is keeping a close watch on the market and is preventing the rupee from slipping beyond the 88.80 level against the US dollar.

The rupee has been trading in a very tight range in recent weeks, with only small day to day movements. This limited volatility is mainly due to steady intervention by the central bank, which is offering support whenever the currency moves close to key levels.

Foreign portfolio investors have pulled out large sums from Indian equities this year, adding pressure on the rupee. Nearly one billion dollars has left the market this month alone, and total outflows fo

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