Rupee moves up after 10 days on likely RBI intervention

Why in news

The Indian Rupee strengthened to 96.20 per dollar after state-run banks likely conducted heavy sales on behalf of the Reserve Bank of India (RBI) to curb depreciation.

Background

The Rupee closed at 96.20 per dollar on Thursday. DBS Bank projects the Rupee will remain between 95-100 against the dollar for the remainder of 2026.

Facts for Prelims

• FactDBS Bank projects Rupee range of 95-100 against the dollar for the rest of 2026
• BodyReserve Bank of India (RBI) conducts currency interventions to stabilize the Rupee

For Mains

Q. Discuss the role of the Reserve Bank of India in managing exchange rate volatility and the trade-offs involved in using interest rate hikes to stabilize the currency.

Dimensions to cover in your answer

• Monetary policy trade-off: Balancing currency stability against domestic inflation and industrial growth
• Liquidity management: Impact of RBI's forex interventions on domestic banking liquidity and capital flows

Keywords: Exchange rate volatility · Monetary intervention · Currency depreciation · Interest rate parity · Forex reserves

More Economy notes

• Why investors are ready to play in global equity league · 29 May 2026
• DGGI set to fire up GST recovery drive against gaming firms after Supreme Court's backing · 27 May 2026
• Supreme Court sets aside NCLAT order which rejected Amazon's appeal · 27 May 2026
• LIC shares drop 4% on Rs 10,000 crore govt stake sale buzz · 27 May 2026
• Top gold loan companies expand bullion holdings to record levels in FY26 · 27 May 2026
• India’s energy strategy needs price correction · 26 May 2026

All Economy current affairs →

Something wrong, or something missing?

Spotted a mistake in a note, or want a topic, format or PDF that would help your preparation? Write to us. We read every mail and fix errors fast.

Report a mistake →Ask for something →thesatyadheesh@gmail.com