New Delhi, July 23: The Indian rupee registered a slight recovery in early trading, gaining 5 paise to stand at 96.48 against the US dollar following suspected market intervention by the Reserve Bank of India. The local currency found temporary footing despite persistent pressure from escalating military actions between the United States and Iran, alongside elevated international crude prices hovering near 96 dollars per barrel.
Financial analysts note that state-owned banks actively executed dollar sales near the 96.50 threshold to stem further currency degradation.
“State-owned banks were seen selling dollars — widely viewed as intervention on behalf of the RBI — around the 96.50 level,” stated Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP. “This prevented a steeper depreciation, but the rupee still closed lower on Wednesday. It remains near its all-time closing low, and if oil prices keep rising, we may see it crossing this level.”
Opening at 96.53 in the interbank foreign exchange market, the rupee advanced slightly after equity trading commenced. The currency continues to face headwinds from foreign institutional capital outflows and weakening domestic equity indices, though a broader pullback in the greenback provided moderate support.
Market experts project that intervention measures will remain vital in stabilizing the currency against external shocks.
“The rupee is expected to move in the range of 96.50-96.65 in Thursday’s session, with risk tilted to the downside, although support from the RBI is likely to limit the losses,” declared Aamir Makda, Commodity and Currency Analyst at Choice Broking. “Key support levels would be at 96.10-95.80.”
