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Rupee Steadies Near 90.33 After RBI Steps In as Stocks Log Fourth Straight Decline

Uncertainty around an IndiaUS trade deal is keeping currency and equity volatility elevated.

Overview

  • The rupee hit a record intraday low near 91.14 on Dec. 17 before a suspected RBI dollar sell-off sparked its biggest intraday rebound in seven months, ending that session at 90.38.
  • PSU banks were seen selling dollars on the central bank’s behalf, with one treasury estimate pegging Wednesday’s intervention near $6 billion, and traders now eye a 90.00–91.00 range.
  • On Thursday morning, the rupee moved narrowly around 90.32–90.38 even as Brent hovered near $60 a barrel and the dollar index held near 98.4.
  • Indian equities fell for a fourth session on Thursday, with the Sensex closing down 77.84 points at 84,481.81 and the Nifty slipping 3 points to 25,815.55.
  • Foreign investors turned provisional net buyers of Rs 1,171.71 crore on Wednesday after a long selloff, but market participants say persistent outflows and stalled trade talks remain the main drags.