The Indian rupee closed slightly stronger on Thursday, finishing at 95.3875 per dollar, as a decline in global crude oil prices and likely dollar-selling intervention by the Reserve Bank of India (RBI) provided support.
The currency’s modest gain reflects easing pressure on India’s current account, which has been strained by elevated energy import costs amid ongoing geopolitical tensions in the Middle East.
Market participants noted that the RBI’s likely selling of dollars helped stabilize the rupee, preventing a sharper slide despite broader risk-off sentiment in global markets.
Brent crude prices retreated from recent highs, offering relief to India, the world’s largest oil importer.
The dip in energy costs helped narrow the trade deficit and reduced the immediate need for aggressive foreign exchange intervention.
Market participants noted that the RBI’s likely selling of dollars helped stabilize the rupee, preventing a sharper slide despite broader risk-off sentiment in global markets.
This development follows a period of volatility for the rupee, which has faced headwinds from rising US Treasury yields and escalating Iran-US tensions.