The RBI, as expected, kept interest rates unchanged but said it would continue to watch global risks, especially US tariffs
Mumbai: The Indian rupee made a slight comeback on Wednesday, rising 12 paise to close at 88.68 against the US dollar, after hitting a record low the previous day. The recovery came as the Reserve Bank of India (RBI) kept interest rates unchanged and announced fresh steps to support exporters and stabilise the currency.
Currency traders said the rupee gained strength after the RBI kept the key repo rate steady at 5.5% in its fourth monetary policy review for the financial year 2025–26. The central bank also maintained a neutral stance, signalling that it is keeping its options open depending on how the global situation evolves.
Other positive factors included strong performance in domestic stock markets, falling global oil prices, and the RBI’s new measures aimed at helping exporters deal with global uncertainties.
At the foreign exchange market, the rupee opened at 88.79 against the dollar, touched a high of 88.65 during the day, and finally settled at 88.68—up from Tuesday’s all-time low of 88.80.
“We expect the rupee to strengthen further as the monetary policy decision, along with a host of measures to support exporters may bring stability to the currency. Strength in the domestic markets and weak tone in the US dollar may further strengthen the rupee,” said Anuj Choudhary, Currency and Commodities Research Analyst at Mirae Asset ShareKhan.
Globally, the US dollar slipped slightly due to concerns over a government shutdown and weak economic data. The dollar index, which measures the dollar’s strength against six major currencies, was down 0.02% at 97.75.
“The US dollar fell amid US government shutdown and disappointing consumer sentiment data. US consumer sentiment unexpectedly fell to 94.2 vs forecast of 96,” Choudhary added.
Global oil prices also dropped, with Brent crude trading 0.74% lower at USD 65.54 per barrel—good news for India, which imports most of its oil.
“Falling global crude oil prices may also aid the domestic unit. However, FII outflows and the ongoing US visa fee hike issue may cap the upside,” said Choudhary, who expects the rupee to trade between 88.35 and 88.90 in the near term.
Indian stock markets saw a strong rally on Wednesday. The Sensex jumped 715.69 points to close at 80,983.31, while the Nifty rose 225.20 points to end at 24,836.30.
Despite the upbeat mood, Foreign Institutional Investors (FIIs) pulled out ₹2,327.09 crore from Indian equities on Tuesday, as per stock exchange data.
The RBI, as expected, kept interest rates unchanged but said it would continue to watch global risks, especially US tariffs, before taking further action.
RBI Governor Sanjay Malhotra said: “There is scope for easing in the coming months to support the economy from any possible hit from US tariffs.”
Subscribe to our Newsletter
Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.
