Reports of RBI exploring rate hikes and FX operations help USD/INR pull back from record highs near 97 to 96 levels.
The Indian Rupee recovered from record lows after the Reserve Bank of India signaled potential measures to stabilize the currency, including rate hikes and FX operations. USD/INR retreated to 96 levels from near 97, supported by reported dollar-selling by state-run banks.
Despite the pullback, INR remains pressured by higher oil prices, elevated U.S. Treasury yields, and portfolio outflow risks. The RBI’s actions are seen as a temporary circuit breaker rather than a reversal of the depreciation trend, with further recovery dependent on external conditions.
Technical indicators show bullish momentum fading, with support at 95.20 and resistance near 97. The RBI’s intervention has slowed one-way depreciation but is unlikely to fully alter the currency’s trajectory alone.