The Reserve Bank of India intervenes to curb rupee depreciation, selling dollars near all-time highs amid persistent outflows and oil price pressures.
The Reserve Bank of India has resumed selling dollars to stabilize the rupee, which trades near its May 20, 2026, record high of 95.4-95.6 after peaking at 96.844. Intervention aligns with the RBI’s 2026 strategy of moderating one-way currency moves rather than reversing trends outright.
The rupee remains the weakest major Asian currency this year, pressured by foreign equity outflows, elevated oil prices due to the Iran conflict, and US tariff threats over India’s Russian oil imports. Despite depleted reserves from prior interventions, the RBI’s actions signal continued willingness to counter sharp depreciation.
Traders view the timing as tactical, coinciding with broader dollar weakness and fading Fed rate hike expectations, suggesting the RBI aims to slow, not halt, the rupee’s decline.