RBI rescue: Rs rises 65p to 90.38/$, best day in 2 months

Mumbai: The rupee bounced back to close at 90.38 against the dollar, up 65 paise from Tuesday’s close of 91.03, following aggressive intervention by RBI. The rupee rose as much as 1% during the day, recovering to a high of 90.08, marking its biggest single-session gain in two months. The move reversed part of the sharp depreciation seen in recent weeks, during which the currency had repeatedly touched new lows.

Market participants said the intervention followed growing speculation over the timing and scale of RBI action after the rupee’s sustained slide. The central bank had earlier conducted a $5 billion dollar-buy swap, which traders said may have set the stage for Wednesday’s spot market intervention.




Dealers said the dollar sales appeared aimed at countering one-sided expectations of continued rupee weakness. In its market interventions, the central bank has often used surprise to maximise the impact of its measures.

According to a report by SBI, the impact of a depreciating currency on the current trade balance is limited. Although India’s goods exports saw a 19.4% growth in November 2025, empirical analysis shows that the benefits of increased export volumes are largely offset by the rising cost of imports. The report said the rapid slide has led to unprecedented demand for dollars in the merchant segment, with combined excess demand reaching $145 billion. To curb this volatility, RBI has intervened significantly. The report estimated that RBI deployed approximately $30 billion between June and Oct 2025, contributing to a decline in forex reserves from a peak of $703 billion in June to $687.2 billion by early Dec.

According to the SBI report, there could be a strong rebound in the second half of the next fiscal year. Two scenarios are anticipated: a continued depreciation towards 92.5 per dollar by mid-2026, or a recovery in which the rupee appreciates by about 6.5% to average around 87 per dollar.