The development also comes a day after RBI strengthened its ability to intervene in the market by absorbing $5 billion from market participants through a three-year USD/INR buy-sell swap.
The Indian currency is currently trading at 90.3475 per USD, against the previous close of 91.0275.
Abhishek Goenka, founder and CEO of IFA Global, said the rupee today witnessed a sharp intraday recovery from levels near ₹91.05 to around ₹90.00, helped by timely intervention from the RBI.
“The central bank intervened to curb excessive volatility and prevent disorderly movement, signaling its discomfort with rapid depreciation above recent levels,” Goenka said.
“While the broader USD/INR bias remains influenced by the trade deal and capital flow dynamics, today’s action reinforces the RBI’s role as a stabilizer rather than a defender of fixed levels,” he said.
Amit Pabari, MD, CR Forex Advisors, said: “The US Federal Reserve has started buying $40 billion worth of government bonds every month, adding more liquidity to the system after the recent policy meeting. More liquidity usually means a softer currency – and that dynamic is starting to show… The recent decline in the rupee is mainly driven by trade uncertainty and foreign investor outflows, rather than domestic weakness. With the dollar also under pressure, any progress in the Trade negotiations quickly can help stabilize sentiment.”
Published on December 17, 2025
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