RBI Steps In as Rupee Hits Near-Term Ceiling at 96
India's rupee has slid 0.3% this week to 95.8750 per US dollar, but the Reserve Bank of India (RBI) is stepping in to prevent further decline.
The RBI's intervention near 96 has turned that number into a near-term ceiling, keeping the spot rate calm despite underlying demand for dollars remaining strong.
This move comes as global interest rates rise, with the Fed and Bank of Japan raising rates this week. This shift can pull money towards higher-yielding assets and away from emerging-market currencies like the rupee.
India's economy is also facing two pressure points: oil prices briefly hit near four-month highs before easing on reports Saudi Arabia aimed to restore half its East-West pipeline capacity within days, while foreign flows remain steady with local risk appetite holding up despite the Nifty 50 rising only 0.3%.