Rupee gives up firm gains as yuan takes a beating, banks purchase dollars

Traders cautious before Fed Chair Powell's speech, market holiday

After strengthening sharply in early trade on Monday, the rupee surrendered most gains and closed steady against the US dollar as the Chinese yuan took a beating and some banks purchased the greenback likely on behalf of the Reserve Bank of India (RBI), dealers said.

The rupee closed at 81.92 per US dollar on Monday as against 81.97 per dollar at previous close. On Friday, the rupee surged 62 paise versus the dollar and strengthened to a one-month high due to firm overseas investment flows.

In early trade on Monday, the rupee gained sharply, rising to a fresh one-month high