Neutral impactForex
Rupee ends at 95.81/$ soothed by RBI intervention; surge in forward premiums tipped to cool
BusinessLine 1 hr ago·25 Sept 2026, 10:24 am
The Indian Rupee ended the week at 95.81 against the US Dollar, finding support from the Reserve Bank of India's (RBI) active market intervention. This stabilization came as global factors, including a dip in oil prices and a slightly weaker dollar, provided some relief to the currency. The central bank's move is aimed at preventing excessive volatility in the foreign exchange market.
For investors, this intervention helps maintain stability in the domestic market, which is crucial for corporate earnings and import costs. While the rupee has recovered somewhat, the situation remains delicate. The sharp rise in one-year forward premiums to 3.50% suggests that traders expect further volatility in the near term. Investors should keep a close watch on global crude oil prices and the RBI's future policy stance.
Excerpt from BusinessLine
The rupee closed modestly stronger on Friday, aided by an easing in oil prices and the dollar after a searing rally in both kept up the pressure on the local currency through the week, eliciting central bank interventions to avert sharp falls. The rupee closed at 95.8125 per dollar, up slightly from its close at…Read the original at BusinessLine
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