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Rupee edges higher as USD/INR hits near two-month lows
USD/INR slid to around 94.80, with RBI activity in spot and NDF markets cited as a key support while forward positioning remains stretched.
The Indian rupee gained against the US dollar on Tuesday, sending the USD/INR pair to about 94.80, its lowest level in roughly two months.
FXStreet attributed the move to likely Reserve Bank of India support, including ongoing intervention in spot and Non-Deliverable Forwards, alongside stronger-than-expected Indian second-quarter GDP and a narrower fiscal deficit.
A Reuters report noted persistent RBI intervention, but also flagged uncertainty about how durable the rupee strength can be given that consistent support can limit further USD selling capacity by the central bank.
RBI data cited by FXStreet showed total net short forward positions at a record $137 billion in July, up from $104 billion in June. In India, Q2 GDP growth held at 7.8% year-on-year, while the Q2 fiscal deficit was 26.8% of the 2026-27 target, or Rs. 4.55 trillion, after net tax receipts rose. In the US, investors were set for ISM Manufacturing PMI and JOLTS data, with expectations that US labor readings could influence Federal Reserve rate expectations.