Rupee strengthened against the US dollar on Thursday, recovering from recent record lows after likely intervention by the Reserve Bank of India (RBI). The domestic currency appreciated by 55 paise to close at 91.6 per dollar, supported by dollar sales in the foreign exchange market.
During the trading session, the rupee touched an intraday high of around 91.41, as improved market sentiment and central bank action helped stabilize the currency. The rupee had earlier come under pressure after falling to a record low earlier this week amid global uncertainty and rising crude oil prices.
Currency traders said state-run banks were seen selling dollars in the market, a move widely believed to be on behalf of the RBI. Such intervention typically aims to reduce volatility and prevent excessive weakening of the domestic currency.
The rupee had weakened significantly in recent days due to global risk-off sentiment and escalating geopolitical tensions in the Middle East. These developments pushed investors toward safe-haven assets and strengthened the US dollar, putting pressure on emerging market currencies including the rupee.
Another key factor weighing on the currency has been the rise in crude oil prices. India is one of the world’s largest oil importers, and higher crude prices increase the country’s demand for dollars to pay for energy imports, which can weaken the rupee.
Forex analysts said the sustainability of the rupee’s recovery will largely depend on how global oil prices move in the coming days. If crude prices remain high, the currency could face renewed depreciation pressure despite RBI intervention.
The central bank’s support, however, helped restore some stability to the currency market and limited sharp fluctuations during the session. Improved sentiment in domestic financial markets also contributed to the rupee’s rebound.
Also Read: Gold falls ₹10 to ₹1,62,870, Silver slips to ₹2,84,900