India’s central bank intervenes in forex markets to curb rupee depreciation, using reserves to counter oil and capital outflow pressures.
The Reserve Bank of India is actively selling US dollars to support the rupee, which has hovered near record lows this year. Three traders confirmed USD/INR sales, citing the central bank’s efforts to defend the currency amid rising oil prices and persistent capital outflows.
The rupee weakened from around 90 to nearly 97 INR per USD earlier in 2026 before recovering slightly with RBI intervention. Last week, the currency gained roughly 1% on near-daily central bank support, though structural headwinds like US tariffs and foreign investor outflows remain.
Softer oil prices and reduced expectations for a September Fed rate hike have eased pressure on emerging market currencies, but risks persist. A renewed crude spike or hawkish Fed repricing could reverse the rupee’s recent stabilization, analysts warn.