Rupee flat as traders mull Fed rate path, keep eyes peeled for flow clues

The Indian rupee was nearly flat at 94.67 per dollar as traders weighed the prospect of a hawkish US Federal Reserve against expected dollar inflows from recent policy support measures. Bank of America and Deutsche Bank now expect the Fed to raise rates this year, with Fed fund futures pricing in over 70% chance of a 25-basis-point hike by September. Nomura expects the RBI's measures to draw around $55 billion in inflows, while Axis Bank sees scope for around $100 billion; Indian equities were down a modest 0.3% amid broader Asian market weakness.