The Indian rupee hovered around 96.2 per dollar, stabilizing after a nine-session slide as markets assessed central bank intervention and broader weakness in Asian currencies.
Despite yesterday’s rebound, sentiment remained cautious, with traders expecting renewed pressure on the currency amid persistent dollar strength.
Softer crude oil prices, however, offered some support to the rupee.
Earlier, the Reserve Bank of India intervened aggressively through substantial dollar sales before markets opened and continued support throughout the trading session.
Investors are now watching closely to see whether the RBI maintains its defense of the currency.
Without sustained intervention, analysts expect importer and hedging demand for dollars to re-emerge, potentially limiting further gains.
Meanwhile, most Asian currencies remained under pressure as the dollar index hovered near a six-week high, supported by resilient US economic data and elevated Treasury yields.
