The Indian rupee closed at 96.55 against the US dollar on Friday, recovering 18 paise from the previous session.
The move marks the third consecutive day of appreciation for the currency, following a 19-paise gain in early trade and a 16-paise advance on Thursday.
Market participants attribute the stabilization to likely intervention by the Reserve Bank of India (RBI).
The central bank’s actions appear to have successfully countered downward pressure stemming from heightened geopolitical tensions in the West Asia region.
This interventionist posture has helped anchor the rupee despite volatile external conditions.
The recent recovery arc for the rupee has been supported by a combination of factors.
Declining global crude oil prices have reduced the import bill pressure on India’s current account, while positive foreign portfolio investment flows have provided additional liquidity support.