The Indian Rupee recovered to 86.63 level per US dollar in early trade Tuesday from the low of nearly ₹88 level seen Monday, led by the Reserve Bank of India’s (RBI) strategic interventions and robust inflows in debt markets, experts say.
“A net inflow of ₹295 crore, primarily into debt markets, provided the initial push. Seizing the moment, the RBI struck while the iron was hot, selling forwards to reinforce the momentum,” said Amit Pabari, MD at CR Forex.
“This intervention triggered a sharp appreciation, compelling exporters to unwind positions as stop-loss levels were breached, further amplifying the rupee’s rally,” he said.
The Indian rupee, in line with peer emerging market currencies, has seen volatile movements with negative bias due to global uncertainties fuelled by US President Donald Trump’s tariff wars. Trump on Monday raised tariffs on steel and aluminium imports to a flat 25 per cent “without exceptions or exemptions”.
Separately, liquidity deficit in the banking system, along with capital outflows from large foreign investors, led the rupee to fall to its new all-time low of 87.95 level per US dollar in intra-day trading on Monday.
Going ahead, experts say rupee may remain in the range of 87.50-88.20 per US dollar in the near term, with 87.50 acting as a key support level, balancing global uncertainties with domestic policy shifts.
