Mumbai, Dec 17: The Reserve Bank of India (RBI) has taken assertive action to stem the recent sharp depreciation of the Indian rupee, intervening heavily in currency markets to support the battered currency. After the rupee weakened persistently and breached record low levels against the US dollar over several sessions, the central bank sold US dollars in both spot and non‑deliverable forward markets, triggering a strong rebound in the rupee’s value — with the currency strengthening by the largest margin seen in about seven months. Analysts said the move underscores the RBI’s intent to counter one‑way, destabilising market trends and to reassure investors amid sustained global volatility.
Market participants noted that the RBI’s intervention helped reverse the rupee’s earlier losses, with the currency rallying from levels near 91 to recover part of its decline, reaffirming the central bank’s role as a stabilising force in forex markets. The intervention came as foreign portfolio outflows and uncertainty linked to global trade dynamics had exerted downward pressure on the rupee, making it notably weaker than many of its Asian peers. The decisive action has been reflected not only in the currency’s gains but also in a more balanced market tone on Indian equities and bonds, although volatility remains elevated as investors continue to assess macroeconomic and external factors.
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