The Reserve Financial institution of India (RBI) bought an estimated $2 billion to $3 billion on Thursday to defend the rupee in opposition to sustained strain, and stepped in once more on Friday, serving to the foreign money strengthen previous the 96-per-dollar mark, in accordance with bankers cited by Reuters.The rupee rose 0.64 per cent to shut at 96.20 in opposition to the US greenback on Thursday after the intervention and prolonged beneficial properties on Friday because the central financial institution resumed greenback gross sales.Bankers mentioned the RBI intervened by massive state-run banks even earlier than markets opened on Thursday, with round $500 million reportedly bought in pre-market buying and selling. Restricted liquidity throughout that interval amplified the influence of the intervention, they added.
RBI intervention intensifies
In keeping with Reuters, the newest intervention marked a major improve from latest days, when common greenback gross sales have been round $1 billion.A dealer at a Mumbai-based financial institution mentioned that the RBI’s greenback gross sales on Thursday appeared “level-agnostic” and geared toward triggering a rally within the rupee whereas discouraging speculative bets in opposition to the foreign money.“The RBI is at present the only main greenback vendor,” a treasury official at a private-sector financial institution informed Reuters, including that the development could proceed until oil costs reasonable.Some merchants estimated the RBI could have bought as a lot as $4-5 billion on Thursday. Heavy intervention reportedly continued all through the buying and selling session, with the rupee shifting in a 95.99-96.50 vary.“The RBI will need to have bought $4-5 billion immediately, so there was heavy greenback promoting after a very long time,” Anil Bhansali, head of treasury at Finrex Treasury Advisors, mentioned, as quoted by ET.
Oil costs stay key strain level
Elevated crude oil costs pushed by the continuing Center East battle proceed to weigh closely on the rupee. India, the world’s third-largest oil importer, depends considerably on imported crude, resulting in greater greenback demand from refiners when oil costs rise.The rupee had weakened practically 2.5 per cent within the two weeks earlier than Thursday’s intervention, whereas the foreign money has depreciated over 3 per cent in FY27 thus far and practically 11 per cent in FY26 in opposition to the greenback.“Underlying sentiments like greater oil costs and FPI outflows proceed, and till these persist, there might be weak spot,” VRC Reddy, head of treasury at Karur Vysya Financial institution, informed ET.
Authorities weighing additional measures
India can also be contemplating further measures to stabilise the rupee, commerce minister Piyush Goyal mentioned on Thursday.Policymakers are even contemplating a potential rate of interest hike to help the foreign money.“There’s a risk of fee motion, which aided the rupee,” Reddy mentioned.DBS Financial institution expects the rupee to commerce within the 95-100 vary for the remainder of 2026.
 sold an estimated $2 billion to $3 billion on Thursday to defend the rupee against sustained pressure, and stepped in .){kind=link}