The rupee recorded its best single-day gain since June, appreciating 0.7% to 88.07 per US dollar, compared to the previous close of 88.80 per dollar. During the day, it rose past the 88 mark, touching a high of 87.95 per dollar.
The Reserve Bank of India intervened heavily in the forex market, selling dollars through state-run banks, which triggered short covering and reversed bearish sentiment. The central bank’s action came after what it described as speculative attacks on the currency in recent sessions.
Traders unwound short positions against the rupee following RBI’s intervention, strengthening the currency further. The US dollar weakened globally, with the Dollar Index down 0.57% to 98.85, as dovish comments from US Federal Reserve Chair Jerome Powell boosted hopes of an upcoming rate cut.
Positive global sentiment from renewed US-China trade optimism also supported the rupee’s recovery.A dealer at a private bank said the RBI had intervened in the non-deliverable forward (NDF) market before opening, and continued support in the spot market helped lift sentiment.
Trade-related optimism also contributed, with market speculation that India’s trade negotiations in the US might lead to lower tariffs between 16% and 19% compared to existing 50% levels. Despite the rebound, the rupee has depreciated 2.95% in FY26 and 2.79% in 2025 so far, though it has appreciated 0.82% in October. Volatility in the rupee has remained subdued due to consistent RBI intervention, according to dealers