The Indian rupee (INR) gained 1% against the US dollar, marking its strongest performance in four months, after the Reserve Bank of India (RBI) took decisive action in the foreign exchange market.
The central bank’s aggressive intervention included large-scale currency purchases and liquidity adjustments, aimed at stabilizing the rupee amid volatile global markets. Following these measures, investor sentiment in the options market shifted strongly in favor of the rupee, driving its rapid appreciation.
Analysts noted that the move reflects RBI’s commitment to supporting domestic currency stability, particularly as India navigates external pressures from global trade fluctuations and capital flows.
Traders observed increased short-term speculative activity, but most agree that the RBI’s intervention has restored confidence in the currency, at least for the near term.
The strengthening rupee may also influence crypto and forex markets, as a more stable local currency can affect digital asset flows and investor risk appetite in emerging markets.
