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Rupee firms as RBI intervention supports USD/INR near 96.30

USD/INR slipped toward 96.30 after the RBI intervened in both spot and non-deliverable forward markets, while the dollar was slightly firmer as safe-haven demand rose amid US-Iran tensions.

Reported · Written up by our desk · Major Pairs

The Indian rupee opened marginally higher against the US dollar, with USD/INR moving down to around 96.30 as the currency gained support after Reserve Bank of India intervention, FXStreet reported. A Reuters report cited by FXStreet said the RBI has been intervening almost daily in both spot and non-deliverable forward markets to limit rupee weakness, though the scale of intervention has been relatively measured versus the pressure on the currency.

FXStreet also noted that the rupee’s recovery after underperforming throughout the week may be short lived, citing renewed risks tied to global energy supply disruption. The report pointed to heightened concerns after Reuters said Iran asked Yemen’s Houthi militia to stand ready to close the Red Sea oil route if the United States were to strike Iranian power infrastructure, a scenario that could tighten already low global oil supplies and raise inflation fears.

At the same time, FXStreet said demand for safe-haven assets picked up on intensifying US and Iran military aggression, lifting the dollar slightly. It cited the US Dollar Index (DXY) trading about 0.1% higher near 100.80, but added that expectations for a Federal Reserve rate hike have cooled following the release of the June US CPI, with CME FedWatch showing odds of a hike later this month at 10.2%, down from 24.6% a week earlier.

Latest closeDollar index 100.71 ▲0.2%

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