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Rupee Fights Back: RBI Intervention Buoys Currency
8 Oct
Summary
- Rupee gained 10 paise to trade at 96.65 against the dollar.
- RBI intervention likely as rupee faces macroeconomic headwinds.
- Forex reserves fell by USD 50 billion in three weeks.
On October 8, 2026, the Indian rupee showed a slight gain, trading up 10 paise to reach 96.65 against the US dollar in early trading. This movement was attributed to probable intervention by the Reserve Bank of India (RBI).
Forex traders noted that the rupee remains under pressure due to persistent macroeconomic challenges. These include a strong global dollar, with the dollar index near multi-month highs, and Brent crude oil prices hovering near USD 102 per barrel.
Further impacting investor sentiment were substantial foreign fund outflows and a notable decrease in forex reserves. Reserves have fallen by USD 50 billion from their September high of USD 786 billion within a three-week period.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, commented that strong corporate demand for dollars and safe-haven capital shifts had previously pushed the USD/INR pair higher. However, state-run bank interventions helped to curb further depreciation. Investors are now anticipating further RBI actions to address speculation and restore the rupee to its perceived undervalued true value.
In related markets, the dollar index was up 0.01 per cent at 102.25. Brent crude futures rose 2.17 per cent to USD 102.37 per barrel, driven by concerns over Middle East supply disruptions, particularly around the Strait of Hormuz. The Indian equity markets also saw a downturn, with the Sensex declining 264.97 points and the Nifty falling 87.50 points in early trade.
