Rupee Rises on Heavy RBI Intervention

2026-01-07 07:31 By Joshua Ferrer 1 min. read

The Indian rupee strengthened around 89.8 per USD, extending gains from the previous sessions to hit a one-week high, as the Reserve Bank once again intervened heavily to push the currency back above the 90 mark.

The move followed the same strategy the central bank did last year, stepping in aggressively to counter one-way rupee weakness and speculative long-dollar positions.

Ahead of the intervention, the currency had slipped about 1% over the past two weeks.

The rupee is still expected to drift back toward the 91 level as it continues to face pressure from persistent foreign selling of Indian equities and lingering uncertainty over a US–India trade deal.

US President Donald Trump warned on Sunday that tariffs on Indian goods could rise further if New Delhi does not meet Washington’s demand to curb purchases of Russian oil.

Meanwhile, investors await upcoming local inflation figures due next week for clues on the central bank’s next policy move in February.



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