The Indian rupee remained stable against the US dollar on Wednesday, with the USD/INR pair trading near recent levels as market participants suspected intervention by the Reserve Bank of India (RBI). While global factors weighed on the rupee, the central bank’s presence in the market appeared to limit further depreciation.
Pressure on the rupee emerged from a stronger US dollar, supported by firm US economic data and rising Treasury yields. Additionally, persistent outflows from Indian equity markets added to the downward pressure. However, traders reported that the RBI likely sold dollars to curb excessive volatility, keeping the currency pair in a narrow range.
The RBI’s measured intervention comes as India balances external risks, including elevated crude oil prices, which increase import bills and widen the current account deficit. Market participants remain cautious about the rupee’s outlook, with the central bank expected to remain active in managing any sharp movements.
Looking ahead, analysts suggest that global risk sentiment and upcoming US economic data will play a pivotal role in influencing USD/INR. While RBI’s intervention offers near-t
