The Indian rupee briefly weakened beyond 91 per dollar before recovering to 90.9450 on the interbank order matching system. Traders indicate the Reserve Bank of India likely sold U.S. dollars ahead of the local spot market opening to stabilize volatility and support the currency.
The rupee’s movement past the 91 mark on Thursday triggered immediate market attention, with traders pointing to central bank intervention. The Reserve Bank of India (RBI) is believed to have sold U.S. dollars before the spot market opened, helping the rupee regain ground.
Key Highlights
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Rupee last quoted at 90.9450 after slipping past 91 per dollar
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Market participants suggest RBI’s dollar sales aimed at curbing volatility
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Intervention underscores RBI’s proactive stance in managing currency stability
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The move comes amid global dollar strength and local demand pressures
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Traders continue to monitor RBI’s actions closely for signals on future policy
The rupee’s resilience reflects the central bank’s balancing act between external pressures and domestic market stability. With global currencies facing heightened volatility, RBI’s intervention highlights its commitment to maintaining orderly market conditions.
Sources: Reuters (RTRS), Interbank Order Matching System