Rupee Recovers from Initial Losses Amid RBI Intervention
The Indian rupee ended Thursday's session with a loss of just 3 paise at ₹95.94 against the US dollar, paring initial losses on likely RBI intervention.
The rupee was under pressure due to outflows of foreign funds and global trade uncertainties after the House of Representatives cleared a law authorising President Donald Trump to impose up to a 100% tariff on India and other countries importing Russian oil.
According to Dilip Parmar, Senior Research Analyst at HDFC Securities, 'The Indian rupee experienced a highly volatile trading session on Thursday, initially buckling under a hawkish Fed onslaught and weaker Asian currency sentiment. However, those early losses proved fleeting as aggressive central bank intervention swooped in with heavy-handed dollar defence, pulling the local unit off the canvas to secure marginal gains.'
The spot USD/INR pair remains in an overall upward trend following its recent surge, though it is expected to consolidate in the short term with key support around ₹95.45 and resistance capped at ₹96.30.