New Delhi: The rupee strengthens past the 90 mark against the US dollar in early trade on Friday, extending its recovery after the Reserve Bank of India intervened to curb sharp depreciation earlier this week.
The domestic currency rose to 89.96 per dollar in initial deals. It opened at 90.1325, around 0.1% higher than its previous close of 90.20. The move followed a tentative rebound after the rupee had slipped to record lows and briefly touched the 91 level against the dollar.
Bankers said the recovery followed active intervention by the RBI. The central bank sold dollars after sustained pressure pushed the currency into a one-way weakening trend. The action triggered unwinding of bearish positions and improved market sentiment.
Dealers said the RBI aimed to disrupt speculative momentum rather than defend a specific level. They added that the intervention helped contain volatility during early trade.
Rupee strengthens as RBI acts, SBI flags medium-term recovery
Market participants said the RBI’s latest move mirrored its strategy from October and November. During that period, the central bank sold dollars repeatedly to counter persistent weakness. It intervened in both the spot and non-deliverable forward markets.
Meanwhile, State Bank of India projected a stronger rebound in the rupee in the second half of the next financial year. In its latest report, SBI said the rupee strengthens further between October 2026 and March 2027 as macro conditions improve.
The report said policy support and currency stability could aid the recovery. Traders said the rupee strengthens in the near term would depend on RBI actions and global dollar movements.
