The rupee last traded at 89.16 per US dollar, up 0.35% on the day.
Before the 9am IST opening, the interbank order matching system had pointed to a decline beyond 89.50, a new all-time low. However, that changed when the RBI intervened. The central bank likely sold dollars on the order matching platform and the non-deliverable futures market, which helped improve sentiment. Subsequently, the rupee opened at 89.15.
The Indian currency had broken past 88.80 on Friday, a level that bankers said the RBI had been holding for weeks, triggering a wave of pressure that was expected to continue this week.
After Friday’s slump, talk turned to the risk of a quick rise to the 90 level, bankers said. The central bank’s aggressive dollar sales on Monday were widely seen as an attempt to halt the rupee’s movement before it picks up pace.
A senior finance ministry official at a private sector bank said conditions for the rupee are “very tough” at the moment, noting that there is no catalyst yet to settle sentiment around the currency.
The lack of progress on a US-India trade deal has further dampened sentiment, traders said, depriving the market of a policy boost that could have offset India’s growing trade deficit and subdued pace of portfolio inflows.
HDFC Bank reiterated the cautious tone and said any improvement on a possible US-India trade announcement could be short-lived
Meanwhile, RBI Governor Sanjay Malhotra on Thursday attributed the rupee’s recent weakness to higher demand for dollars, which he said could decline if India and the US agree on a trade deal. India’s foreign reserves provide “ample protection” for the currency, he added.
Published on November 24, 2025
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