The Indian Rupee gains modestly as the central bank likely steps in to curb losses amid rising oil prices and capital outflows.
The Indian Rupee (INR) rose slightly against the US Dollar (USD) on Thursday, trading near 96.47 after the Reserve Bank of India (RBI) reportedly intervened in spot and non-deliverable forwards markets. The USD/INR pair remains close to its two-month high of 96.75, hit earlier this week.
The RBI’s intervention follows weeks of pressure on the INR due to higher oil prices and persistent foreign fund outflows from Indian equities. Oil prices surged further after attacks on Saudi oil tankers in the Red Sea, reinforcing concerns over energy supply risks.
Despite the modest recovery, analysts expect the INR’s upside to remain limited as crude oil prices continue climbing, straining India’s import-dependent economy.