Rupee Strengthens To 95.60 Against Dollar As RBI Steps In With Pre-Market Dollar Sales

Ashik Bothra - Mumbai Bureau May 29, 2026 2,400 Views

The Indian rupee appreciated to 95.60 per US dollar on the interbank order matching system, recovering from its earlier level of 95.77, after the Reserve Bank of India intervened with dollar sales ahead of market opening to stabilize the currency and prevent further depreciation.

Central Bank's Morning Maneuver

The rupee's recovery in early Friday trading came on the back of what traders described as timely intervention by the RBI, which sold US dollars in the pre-market session to shore up the domestic currency. The move reflects the central bank's continued vigilance in managing exchange rate volatility amid global currency headwinds and sustained dollar demand from importers.

How The Rupee Moved

On the interbank order matching system, the rupee climbed from 95.77 to 95.60 against the greenback, marking a gain of 17 paise in intraday trade. Traders monitoring the spot market confirmed that the RBI's dollar sales provided immediate support to the local unit, helping it claw back losses accumulated in recent sessions.

Why The Intervention Matters

The RBI has been actively managing rupee volatility through strategic forex interventions, particularly during periods of heavy dollar demand or external shocks. By selling dollars from its foreign exchange reserves, the central bank aims to prevent sharp depreciation that could fuel import inflation and destabilize macroeconomic conditions. The pre-market intervention signals the RBI's readiness to defend key psychological levels and maintain orderly currency markets.

Market Context And Dollar Demand

The rupee has been under pressure in recent months due to elevated crude oil prices, global risk-off sentiment, and sustained outflows from domestic equity markets. Friday's intervention comes amid heightened uncertainty over global growth prospects and ongoing geopolitical tensions in West Asia, which continue to influence oil prices and capital flows into emerging markets like India.

Key Highlights

Indian rupee strengthened to 95.60 per US dollar from 95.77 on the interbank order matching system
The Reserve Bank of India sold US dollars in the pre-market session to support the rupee
Rupee gained 17 paise in intraday trade following RBI intervention
Traders confirmed central bank activity aimed at shoring up the domestic currency
RBI's forex interventions are part of ongoing efforts to manage exchange rate volatility
Rupee has faced pressure from elevated crude oil prices and global risk-off sentiment
Intervention reflects RBI's commitment to prevent sharp depreciation and maintain macroeconomic stability