The Indian rupee posted its best trading performance in more than six weeks on Monday, driven by a combination of aggressive central bank intervention and a sharp decline in global oil prices.
The currency opened at 96.1475 against the U.S. dollar and strengthened to an intraday high of 95.7950, a significant recovery from the previous session’s close of 96.5625.
The rally was amplified by technical factors, as the combined pressure from Reserve Bank of India (RBI) buying and lower energy import costs triggered stop-loss orders for traders holding long dollar positions.
This dynamic created a feedback loop that accelerated the rupee’s appreciation during the session.
The move follows a period of sustained pressure on the currency, with the RBI having recently expanded its defense efforts across multiple market segments to curb depreciation.
The central bank’s active stance, combined with the external tailwind from softer crude benchmarks, provided the necessary momentum to break through recent resistance levels.