RBI Governor Malhotra pledges intervention to curb excessive INR volatility, boosting investor confidence amid lower oil prices.
The Indian Rupee (INR) surged to near 83.20 against the USD, its strongest level in nearly two weeks, extending a four-day rally. The appreciation follows RBI Governor Sanjay Malhotra’s remarks affirming readiness to intervene in forex markets to counter speculative moves.
Malhotra cited nearly $700 billion in reserves as a tool to stabilize the currency, while also expressing optimism about INR strength once Middle East tensions ease. Earlier declines in oil prices, driven by US-Iran deal hopes, further supported the rupee’s gains.
Markets reacted positively to the RBI’s stance, with the USD/INR pair retreating from recent highs. The rupee’s recovery reflects reduced volatility concerns amid robust central bank backing.