The Indian rupee faced another bout of volatility on Wednesday, opening at a record low of ₹91.07 per US dollar before bouncing back later in the session. Early trading pressure pushed the currency to around ₹91.08, reflecting continued foreign fund outflows and repatriation of overseas corporate earnings.
Market watchers say the rupee’s weakness is part of a broader trend affecting emerging market currencies. Investors have been cautious amid global economic uncertainties and lingering concerns over trade negotiations with the United States.
The Reserve Bank of India (RBI) stepped in decisively to curb the slide. State-run banks, acting on the central bank’s guidance, sold dollars in the spot and forward markets, helping the rupee recover some ground. The currency strengthened to around ₹90.25 intraday and eventually settled near ₹90.28.
“The RBI’s timely action reassures the market that extreme volatility won’t persist,” said a currency strategist.Analysts noted that such intervention is part of the RBI’s strategy to prevent a one-sided depreciation, which could increase costs for importers and strain corporate treasuries.
Despite the rebound, traders remain cautious, noting that the rupee is likely to remain sensitive to foreign investment flows, global market moves, and domestic economic developments. With inflation and interest rate expectations in play, analysts expect short-term volatility to continue.
The rupee’s swings underline the delicate balancing act for the central bank: supporting the currency without disrupting economic growth. For businesses and investors, the message is clear, while short-term fluctuations are inevitable, RBI intervention can provide a stabilising influence when markets turn jittery.
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