RBI Seen On The Offer: Rupee Recovers From Lows As Dollar Selling Kicks In

The Indian rupee is trading around 96.31 per U.S. dollar, pulling back from an intraday low of 96.3850 after suspected Reserve Bank of India intervention via state-run banks, according to traders. The move highlights the central bank’s active management of currency volatility amid global dollar strength and foreign outflows.

Rupee Off Lows After Likely Intervention

In early moves, the rupee weakened toward 96.39 against the dollar before recovering as state-owned banks were seen selling dollars on behalf of the central bank, dealers said. This pattern is consistent with recent episodes where the RBI has sought to smooth excessive rupee depreciation while avoiding a hard defence of any particular level.

Central Bank Strategy In Focus

Market participants believe the RBI is continuing its long-standing playbook of using its forex reserves to curb sharp intraday swings rather than target a fixed exchange rate. By leaning against speculative pressure and disorderly moves, the central bank aims to keep rupee volatility contained, support importers’ hedging needs, and preserve broader financial stability.

What Traders Are Watching Next

FX traders are closely tracking global dollar moves, crude oil prices, and equity flows to gauge whether the rupee will re-test recent lows or stabilise in a narrow band. Any sustained bout of dollar buying by corporates, coupled with risk-off sentiment, could renew pressure, though expectations of periodic RBI dollar selling remain a key anchor for market positioning.

Currency Market Takeaways

1. Rupee last around 96.31 versus intraday low near 96.3850
2. State-run banks seen selling dollars, likely on RBI’s behalf
3. Intervention viewed as volatility smoothing, not level targeting
4. Global dollar strength and flows remain key drivers for INR
5. Traders eye data, oil and risk sentiment for next directional cue