The Reserve Bank of India (RBI) stepped in to support the rupee after it weakened to a fresh record low of 91.98 against the US dollar on Thursday. Traders said the central bank likely sold dollars before the local spot market opened to curb further volatility.
The rupee has fallen about 2% so far this year and nearly 5% since US President Donald Trump imposed steep tariffs on Indian exports to the US, India’s largest market. Persistent foreign capital outflows and a surge in corporate demand for dollar hedging added pressure on the currency, despite strong domestic economic indicators.
Market signals from the non-deliverable forward segment had already hinted at a possible breach of the 92-per-dollar mark. RBI’s intervention is aimed at preventing sharp depreciation and maintaining currency stability amid global trade uncertainties.
RBI Intervenes as Rupee Slips to Record Low Near 92 per Dollar
