INR vs USD: Rupee rallies most in over two years, back above 87/dollar mark on likely RBI intervention | Stock Market News
Source: Live Mint
The Indian rupee witnessed a sharp surge on Tuesday, rallying the most in over two years against the US dollar, aided by the central bank’s heavy-handed intervention.
According to a Reuters report, the jump in the domestic currency also triggered stop losses for speculators betting against the currency.
The Reserve Bank of India (RBI) had also intervened heavily on Monday to support the rupee, Reuters reported traders as saying.
The currency gained nearly 1%, the most since November 2022, to 86.6362 per dollar, as per a Bloomberg report. With today’s gain, the rupee moved back above the 87 per dollar mark for the first time since January 31. The rise in rupee comes even as other Asian currencies trade lower.
“As USD/INR neared 88, the RBI intervened, leveraging its $630 billion reserves and 10-month import cover. It sold $2–$3 billion to curb volatility, stabilizing the rupee and reinforcing market confidence,” Amit Pabari, MD, CR Forex Advisors said.
The rupee is expected to trade at elevated levels of 87.95-88.20 in the near term, with 87.20-87.40 acting as a key support level, he added. “A close below 87.00 level is the first indication of a trend reversal,” according to Pabrai.
Asian currencies remain weak
The dollar index remained mostly steady at 108.3, while other Asian currencies fell by 0.1% to 0.7%. This followed the announcement by U.S. President Donald Trump of a 25% tariff on all steel and aluminum imports.
The rupee has been under pressure this year due to worries about a possible trade war, ongoing foreign selling of local stocks, and policy changes by the RBI, causing it to drop by over 1% in 2025 so far.
(With inputs from agencies)
