Rupee Strengthens as India's Forex Reserves Soar

The Indian rupee has been bolstered by significant foreign inflows, with India's forex reserves rising to $136 billion as of August 31, 2026. This robust increase in capital-raising and foreign currency non-resident deposits has empowered the Reserve Bank of India (RBI) to actively defend the rupee and maintain stability.

The CAD/INR is trading above its key moving averages on both the hourly and daily timeframes, reflecting a supportive technical backdrop. The pair currently sits at ₹68.5852, showing a modest intraday gain.

According to technical analysis, the CAD/INR is expected to consolidate within the ₹68.2423 to ₹68.9281 range over the next 2-3 trading days. A sustained break above ₹68.9281 could trigger further upside momentum, while a decline beneath ₹68.2423 may lead to a sharper short-term correction.

The RBI's increased intervention capacity has influenced cross-currency markets such as CAD/INR by supporting the strength of the rupee in global trading.