Intervention and policy adjustments aim to counter INR weakness driven by strong USD demand and rising oil prices.
The Reserve Bank of India has intervened in onshore and offshore markets to prop up the rupee, which traded near its all-time low of 96.965 against the dollar. USD/INR fell 0.2% to 96.4575 amid the central bank’s efforts to curb depreciation pressures.
Recent measures include easing rules for foreign bond investments and encouraging non-resident Indian dollar deposits. However, stronger importer demand for USD and elevated oil prices have limited the impact of these steps. Benchmark 10-year government bond yields rose 4 basis points to 6.82% as currency pressures persisted.
Authorities remain focused on stabilizing the rupee through FX intervention and policy tweaks, though external pressures continue to weigh on sentiment.