Rupee Recovers 18 Paise Amid Expected RBI Intervention

The Indian rupee recovered by 18 paise to close at 96.55 against the US dollar on Friday, with traders citing likely intervention by the Reserve Bank of India (RBI) as a possible factor.

A combination of heightened tensions in West Asia and sustained negative sentiments at the domestic equity markets put pressure on the rupee, according to forex traders.

The rupee opened weaker at 96.81 but traded in a range of 96.30-96.81 before settling at 96.55 (provisional), up from its previous close of 96.73 against the US dollar on Thursday.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, noted that reports of RBI intervention and PSU banks selling dollars to stabilize the rupee could help prevent further depreciation.