RBI intervention, dollar flows push rupee to two-month peak
The currency ended at 94.9500, up 0.2% from the previous close, notching its third consecutive daily rise.
The Indian rupee surged to a two-month peak against the U.S. dollar on Tuesday, driven by aggressive intervention by the Reserve Bank of India (RBI) and inflows from foreign banks. The currency reached above 95 to the dollar for the first time in two months, bucking a downward trend in Asian currencies following a global bond rout.
Treasury yields in the U.S. spiked to their highest since January 2025, with traders betting on a possible interest rate hike from the Federal Reserve. Indian banks sold dollars through state-run banks, further bolstering the rupee. Foreign banks also offered dollars to the market, contributing to the currency's rise. However, Brent crude prices and global yields limited the rupee's upside potential, with analysts forecasting the currency to trade between 94.75 and 95.25 in the near term.
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