On December 1, 2025, traders indicated RBI was selling U.S. dollars to arrest the rupee’s slide after it hit 89.49/USD. Intervention helped stabilize the currency amid global headwinds, crude oil pressures, and capital outflows. Analysts expect calibrated RBI action to balance inflation risks with currency stability.
Key highlights of the development:
The rupee’s weakness stems from strong U.S. economic data, expectations of prolonged higher interest rates by the Federal Reserve, and capital outflows from emerging markets.
Rising crude oil prices and India’s current account deficit have added pressure, making intervention critical to prevent further depreciation.
Traders noted RBI’s dollar sales helped the rupee recover marginally from intraday lows, signaling the central bank’s commitment to maintaining currency stability.
While exporters benefit from a weaker rupee, importers—especially in energy and electronics—face higher costs, raising inflationary risks.
Analysts believe RBI will continue calibrated interventions, balancing reserves management with the need to contain volatility.
This real-time move underscores RBI’s proactive stance in shielding the rupee from excessive swings while navigating global headwinds.
Sources: Reuters, Economic Times, Business Standard