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RBI Steps In to Shield Rupee Amid Global Market Turbulence and NDF Maturities

The Reserve Bank of India (RBI) reportedly intervened in currency markets on Tuesday to stabilize the rupee, which faced downward pressure from weakening global risk sentiment and dollar demand linked to expiring non-deliverable forward (NDF) contracts, according to five market traders.

After dipping to an intraday low of 87.3850 against the greenback, the Indian currency showed modest recovery at 87.2850 by late morning trading hours (11:30 AM IST). Market participants observed state-owned banks actively selling dollars around the 87.30 level - a move widely interpreted as proxy intervention by the central bank.

"The RBI's presence appears concentrated around the mid-day forex fixing window," noted a senior dealer at a private bank. "We could see renewed upward momentum in USD/INR once this support ebbs."

The maturity of NDF positions typically creates concentrated dollar buying during daily reference rate calculations, creating headwinds for emerging market currencies like the rupee. This comes despite broader dollar weakness, with the DXY index shedding over 3% through March.

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Indian Rupee Surges Past 85 Against Dollar as Trade War Fears Rock Markets

The Indian rupee staged an impressive rally on Friday, breaking through the psychologically important 85 barrier against the US dollar as global markets reacted violently to escalating trade tensions. The currency's surge came amid a perfect storm of falling oil prices and a collapsing dollar index.

Indian rupee slips near record low amid dollar demand and Fed policy jitters

The Indian rupee extended its losing streak on Wednesday, pressured by robust dollar demand from importers making month-end payments and declining hedging costs that made bearish bets on the currency more attractive.

Indian rupee slips to record low against UAE dirham, but RBI likely curbs losses

The Indian rupee declined to a record low on Thursday (Dh24.53), deepening its fall past the 90-per-dollar mark as corporate dollar sales and the lack of tangible progress towards a trade deal with the US hurt Asia's worst-performing currency.The rupee has fallen more than 5 per cent against the dollar in 2025, as US tariffs of up to 50 per cent on Indian goods have hurt exports to the country's biggest market and have diminished the appeal of local equities.Foreign investors have pulled out nea

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Indian Rupee Surges Past 85 Against Dollar as Trade War Fears Rock Markets

The Indian rupee staged an impressive rally on Friday, breaking through the psychologically important 85 barrier against the US dollar as global markets reacted violently to escalating trade tensions. The currency's surge came amid a perfect storm of falling oil prices and a collapsing dollar index.

Indian rupee slips near record low amid dollar demand and Fed policy jitters

The Indian rupee extended its losing streak on Wednesday, pressured by robust dollar demand from importers making month-end payments and declining hedging costs that made bearish bets on the currency more attractive.

Indian rupee slips to record low against UAE dirham, but RBI likely curbs losses

The Indian rupee declined to a record low on Thursday (Dh24.53), deepening its fall past the 90-per-dollar mark as corporate dollar sales and the lack of tangible progress towards a trade deal with the US hurt Asia's worst-performing currency.The rupee has fallen more than 5 per cent against the dollar in 2025, as US tariffs of up to 50 per cent on Indian goods have hurt exports to the country's biggest market and have diminished the appeal of local equities.Foreign investors have pulled out nea

Indian rupee hits record low against dirham; will UAE grocery prices fall?

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