RBI’s Strategic Dollar Sales Lift Rupee at Spot Market Open

Updated: October 17, 2025 09:11

Image Source: The Hans India

The Reserve Bank of India (RBI) likely sold US dollars before the spot market opened, nudging the Indian rupee higher. The rupee opened at 87.86 per US dollar, up 0.07% from the previous close of 87.82, reflecting subtle central bank intervention to support the domestic currency amid global forex market dynamics.

On October 17, 2025, traders observed that the Indian rupee opened marginally stronger against the US dollar at 87.86, up 0.07% from its previous close of 87.82. Market participants attribute this positive opening to probable proactive dollar sales by the Reserve Bank of India (RBI) prior to the official start of the spot market session. Such interventions aim to moderate excessive rupee depreciation and provide stability amidst renewed global currency volatility influenced by external risk factors.

The RBI’s approach echoes earlier strategic interventions this month, where the central bank sold dollars promptly at market opens through state-owned banks or via forward markets. This intervention helps to buffer the rupee against sharp downside pressures and maintain orderly currency market conditions amid challenging international capital flows and geopolitical uncertainties.

Notable Updates:

The rupee opened stronger at 87.86 per US dollar, appreciating 0.07% from the previous close of 87.82.

Market insiders indicate the RBI likely sold dollars before the spot market opened today to support the rupee.

This intervention mirrors RBI’s recent active defense strategy following sharp rupee declines earlier in October.

The move is aimed at curbing volatility and preventing an excessive slide below the 88 mark against the US dollar.

Global factors such as weakening dollar index and risk-off sentiment in Asia influence domestic currency dynamics.

Traders remain watchful of RBI’s threshold levels and future intervention plans amid fluctuating capital flows.

The rupee's performance could be affected by global inflation trends, US monetary policy, and foreign investment inflows.

The Reserve Bank of India’s active currency management is seen as a signal of its commitment to ensuring orderly forex markets without targeting a fixed exchange rate. Such calibrated interventions bolster investor confidence and help mitigate excessive speculative pressures impacting the rupee.

Sources: Reuters, Moneycontrol, Karur Vysya Bank Treasury, NSDL data, market analysts