The Indian rupee maintained a narrow range at the start of the week, ending Monday with minimal movement as domestic demand for the dollar was effectively countered by steady foreign inflows. The local unit slipped by a marginal **1 paisa** to settle at **90.67** against the US dollar. This follows a period of consolidation where the currency has hovered near the **90.66** level, reflecting a cautious but stable market environment. Pressure on the rupee has recently stem from significant outflows by Foreign Institutional Investors. In a single recent session, overseas investors offloaded shares worth **Rs 7,395.41 crore**, primarily driven by a sell-off in the information technology sector. External factors remain a primary focus for traders. While the US dollar index has shown periodic strength, global oil prices have seen a slight uptick, adding to the import bill for the world's third-largest oil consumer. The Reserve Bank of India continues to play a stabilizing role. The country's foreign exchange reserves currently stand at **$717.06 billion**, down from a historic peak of **$723.77 billion** earlier this month. Despite this recent dip, the buffer remains robust, providing cover for over **11 months** of imports. Monetary policy signals from the central bank have provided further clarity. The Reserve Bank of India recently maintained the repo rate at **5.25%**, signaling a neutral stance. This decision comes as retail inflation was recorded at **2.75%** for January, comfortably within the bank's target range. Market participants are now looking toward upcoming trade balance figures and global cues for further direction. With the US markets closed for a public holiday, trading volumes remained thin, contributing to the currency's rangebound performance today. The domestic economy's growth outlook remains a supportive factor for the currency. Projections for real GDP growth in the current fiscal year have been adjusted to **7.4%**, bolstered by a new trade agreement with the United States that targets a total trade volume of **$500 billion**.