Overview
- The RBI is estimated to have sold roughly $3–5 billion across spot and non-deliverable forward markets via state-run banks to defend key levels near 88.80.
- Following the intervention on Oct. 15, the rupee logged its biggest single-day gain in nearly four months, rebounding about 73–75 paise to close near 88.06–88.08.
- The currency extended gains to around 87.75–87.87 on Oct. 16–17, with traders citing early RBI support on Friday before importer hedging capped the advance.
- A softer U.S. dollar on a more dovish Federal Reserve tone, lower crude prices, returning foreign inflows, and optimism around U.S.–India trade talks supported the recovery.
- Dealers said the RBI appears prepared to backstop the currency, though persistent importer demand and offshore activity may constrain further appreciation.