Rupee Attempts Recovery on Likely RBI Support

The Indian rupee edged higher around 88.5 per USD, attempting to recover from all-time lows, likely supported by central bank measures.

The Reserve Bank of India intervened again to support the currency, focusing on offshore and derivative markets, while thin local liquidity amplified the impact.

State-run banks contributed by selling dollars on the central bank’s behalf, reinforcing the RBI’s defense of the 88.80 level, as seen in previous months.

Market sentiment remains anchored on the central bank preventing a move past this level, with any signs of weakness expected to trigger rapid repricing.

The modest rebound highlights the RBI’s ongoing role in stabilizing the currency amid persistent dollar demand and broad dollar strength.

The rupee has also struggled since steep US tariffs on Indian exports were imposed in late August, keeping the currency pinned near record lows in recent sessions.