Particle.news
Download on the App Store

Rupee Rebounds After RBI Steps In, With 90 per Dollar Still in Sight

RBI dollar sales plus softer oil spurred an early bounce, with traders warning depreciation risks persist unless a USIndia deal breaks the stalemate.

Overview

  • The currency rose about 49 paise to roughly 89.17 in early Monday trade after banks sold dollars and the RBI was seen intervening, helped by slightly cheaper Brent.
  • Friday’s session saw a 98‑paise slide to a record close near 89.66, the steepest one‑day drop in more than three years on heavy dollar demand and equity selloffs.
  • Analysts say the rupee remains biased toward the 90 mark unless a clear catalyst emerges, with several pointing to a potential USIndia trade agreement as the key swing factor.
  • RBI officials stress they do not target a specific level and cite strong buffers, with foreign‑exchange reserves up $5.54 billion to $692.58 billion in the week ended Nov 14.
  • Underlying pressures include a record October merchandise deficit near $41.7 billion, an 11.8% export drop, FII equity outflows, and US tariffs that limit short‑term relief for many exporters.