Traders report that the RBI is intervening in the forex market, selling dollars via state-run banks to prevent the Indian rupee from further weakening — the rupee is currently hovering near its record low of ~₹88.75 to the U.S. dollar. The central bank has been seen acting around the ₹88.80 level to counter sharp depreciation amid external pressures.
The rupee’s slide reflects factors such as hedge mismatches, foreign outflows, and strong global dollar demand. While intervention may offer short-term relief, sustaining currency stability amid volatile external conditions will require deeper structural supports — including more foreign investment, trade balance improvements, and capital controls.
