Overview

• Bankers and traders estimate the Reserve Bank of India sold up to about $5 billion in onshore and offshore markets to deter speculative positions.
• Wednesday’s action delivered the biggest single-day gain in nearly four months, with the rupee closing around 88.06 after a 73–75 paise rise.
• The currency strengthened further in early Thursday trade to roughly 87.68–87.70 before trimming gains, with some importer demand capping the move.
• Market participants say the central bank has been defending the 88.80 level to signal discomfort with a breach of 89 and to discourage short sellers.
• A softer dollar, lower crude prices, optimism around US‑India trade discussions and renewed foreign inflows contributed to the improved tone.