The Indian rupee continues to remain under pressure against the US dollar, prompting the Reserve Bank of India to intensify its intervention in the currency market. The central bank has increasingly stepped in when the rupee weakens sharply, while foreign-deposit inflows are providing some additional support.
Currency traders are closely monitoring crude oil prices, foreign portfolio flows and the dollar’s movement. A sustained rise in oil prices could increase India’s import bill and put additional pressure on the rupee, while stronger foreign inflows could provide some relief.
The currency market is therefore likely to remain sensitive to both global geopolitical developments and RBI action in the coming sessions.
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