"Rupee will be range bound... It will neither become very strong nor weak, which is the strength of the rupee," Mayaram told reporters.
The currency is not volatile, he added.
Mayaram said several companies that have taken forward positions will square that off, and "therefore" the rupee will remain range bound.
Extending its rising streak for the fourth straight session, the rupee closed the day at 58.59 per dollar - up 20 paise. It had jumped 32 paise to trade at a fresh 11-month high of 58.47 in the early trade on sustained foreign capital inflows following the BJP-led NDA sweeping the Lok Sabha elections.
Global credit rating agency Moody's said the election results will have the immediate effect of sustaining investor sentiment, which has also recently boosted India's equity indices and the rupee.