RBI Intervention Strengthens Rupee Amid Euro Selling Pressure

The Reserve Bank of India (RBI) has been actively intervening in both offshore and onshore currency markets to support the Indian rupee. According to reports, the RBI used its record foreign-exchange reserves to prop up the rupee.

This intervention was accompanied by a surge in fresh investments tied to stock index adjustments and MSCI-related inflows, which increased demand for INR assets.

As a result, the euro to Indian rupee (EUR/INR) rate has seen some stability, but still remains under broader selling pressure. The pair currently trades below its key short- and medium-term moving averages while remaining above its longer-term trend supports.

Technical analysis suggests that EUR/INR is likely to trade within the ₹109.4045 to ₹110.5041 volatility band over the next two to three sessions, with a very low probability of an upward move.

The RBI's actions and the sustained intervention have strengthened the case for further downside risk, with deeply oversold readings warning traders to closely monitor the next move below key support.