November 24, 2025 : The Indian Rupee strengthened 0.4% against the US Dollar on Monday as the Reserve Bank of India intervened to prop up the local currency. The INR-USD exchange rate stood at 89.15 as against 89.48 in the previous close.
The Reserve Bank of Indian likely intervened to support the rupee before the local spot market opened on Monday, four traders told Reuters, putting the currency on track to open above its all-time low hit on Friday.
Traders said that the RBI had likely stepped in the spot and non-deliverable forwards market to support the South Asian currency.
Rupee @ 90?
“The rupee may easily breach 90 in the absence of the RBI,” Ritesh Bhansali, deputy CEO at Mecklai Financial Services Ltd., told Bloomberg News, pointing to levels in the offshore market. He expected the central bank to step in at 90 to 90.50 per dollar to prevent a “free-fall” which might attract speculative trading.
The rupee has declined 4.5% over the year so far and is among the worst-performing Asian currencies this year. Any further weakness might exacerbate outflows from local equities, while also posing future inflation risks as India is a net importer of fuel.
Rupee in Unchartered Territory
India’s trade deficit widened to a record in October, with exports to the US plummeting a second straight month after the imposition of 50% tariffs.
“On the back of a higher-than-expected trade deficit, net financial flows have been on the weaker side, thereby pressuring the rupee to depreciate while RBI had been containing the volatility,” wrote Yes Bank economists including Indranil Pan, in a note.
With the rupee now in uncharted territory, predicting levels would be difficult, but the currency should be capped at 90 per dollar, they said.
Following its recent currency market interventions, the RBI’s foreign-exchange reserves have dropped around $10 billion since mid-September, data released after trading hours on Friday showed.
Summary:
The Indian rupee opened 0.4% higher against the US dollar, boosted by expectations of RBI intervention to stabilize the currency amid global market volatility.