FX.co ★ Indian Rupee Slips Despite RBI Support

The Indian rupee weakened to around 90.6 per dollar, giving up recent gains as a broad risk-off mood and softness across Asian currencies weighed on sentiment. An unexpected pre-market intervention by the Reserve Bank of India provided only a modest boost on Thursday. The central bank’s dollar sales triggered an initial rally in the rupee, but the move soon lost momentum as importers used the brief recovery to put on new hedges, and traders continued to buy dollars on dips. The absence of sustained follow-through after the RBI-driven spike reinforced the market view that the rupee’s downside from current levels may be limited, even as broader selling pressure persists amid cautious investor positioning. Adding to the pressure, the yuan extended its advance against the rupee, with analysts noting that divergent currency policy stances in India and China could keep the rupee under strain.