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Rupee Rebounds from Record Low to 91.58/USD Amid Suspected RBI Intervention

The Indian rupee sharply recovered to 91.58 against the US dollar after hitting a record low of 92.31, with experts pointing to suspected intervention in the offshore NDF market just before domestic trading opened. Currency analyst K N Dey noted the sudden two-minute move from 92.16 to 91.58, suggesting unofficial action to stabilize the currency. Despite the brief rebound, analysts warn the rupee remains under severe pressure from geopolitical tensions and elevated crude oil prices. Ponmudi R of Enrich Money stated that holding above 92.20 could lead the pair toward 92.50-92.80, driven by risk-off flows and continued dollar demand.

Key Points: Rupee Recovers from All-Time Low, Experts Flag Intervention

  • Rupee recovers from all-time low of 92.31
  • Suspected RBI intervention in NDF market
  • Geopolitical tensions and oil prices keep pressure
  • Experts warn of potential fresh highs above 92.20
2 min read

Rupee recovers to 91.58/USD from all-time low, experts flag suspected intervention, geopolitical pressure

Indian rupee rebounds to 91.58/USD from record low of 92.31. Experts cite suspected RBI intervention and warn of ongoing geopolitical pressure.

Rupee recovers to 91.58/USD from all-time low, experts flag suspected intervention, geopolitical pressure
"The market will continue to remain under pressure till the geo political issue comes to an end. - K N Dey"

New Delhi, March 5

The Indian rupee recovered on Thursday after hitting an all-time low of 92.31 against USD, though currency experts believe the domestic currency is likely to remain under pressure due to ongoing geopolitical tensions and elevated crude oil prices.

According to currency experts, the rupee strengthened to 91.58 against the US dollar after suspected intervention in the market helped the currency recover sharply before the opening of the domestic market.

K N Dey, a currency expert, told ANI that there was a sudden movement in the offshore market just before the opening of the Indian rupee market.

"Today morning at around 8.50/55 a.m. NDF was trading around 92.15/16 levels, suddenly just before opening of Indian OTC Rupee market at 9.00 a.m., the NDF spot came from 92.16 to 91.58 in a span of 2 minutes before 9 a.m. Though not officially confirmed but suspected intervention in the NDF. The market will continue to remain under pressure till the geo political issue comes to an end. Yesterday 92.31 was all time low," he said.

Experts noted that such sharp movements in the offshore market often indicate possible intervention to stabilise the currency when it approaches record low levels.

In currency trading, the NDF (Non-Deliverable Forward) market refers to offshore trading of currencies like the Indian rupee where settlement happens in US dollars instead of physical delivery of the currency.

The OTC (Over-The-Counter) market refers to direct currency trading between banks and financial institutions rather than through a centralised exchange. Movements in the NDF market often influence the opening trend of the domestic OTC rupee market.

Market participants said that despite the brief recovery, the rupee continues to face pressure from global factors including geopolitical tensions and rising crude oil prices.

Ponmudi R, CEO of Enrich Money, said the USD/INR pair continues to maintain a strong upward trajectory, reflecting sustained strength of the US dollar against the Indian rupee.

"A sustained hold above 92.20 could trigger further upside toward 92.50-92.80 or even higher levels, potentially leading to fresh highs if risk-off flows persist and oil-driven dollar demand continues to strengthen," he said.

He added that the movement reflects continued pressure from elevated crude oil prices amid persistent geopolitical tensions in the Middle East, along with heavy selling by foreign portfolio investors.

- ANI

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Reader Comments

P
Priya S
This volatility is worrying for my small business. We import materials, and these sudden swings make budgeting impossible. Hope the situation stabilizes soon.
V
Vikram M
While intervention is necessary, it's a short-term fix. The real issue is foreign investors pulling out money. We need policies that make India a more attractive and stable investment destination compared to other markets.
S
Sarah B
Interesting to see how interconnected global markets are. A move in the offshore NDF market before 9 AM sets the tone for the whole day here. Shows we're not insulated from global geopolitics.
R
Rohit P
Common man like me feels the pinch. Petrol prices are already through the roof. If rupee weakens further, it will get even worse. Government should think about giving some relief on fuel taxes.
K
Karthik V
The experts are right. 92.20 is a key level. If it breaks, we could see 92.80 quickly. Time to be cautious if you have any foreign exchange exposure. #Forex
M
Meera T
Respectfully, while RBI intervention is needed, we've seen this pattern before. We recover a bit, then slide to a new low. We need a more structural, long-term economic strategy beyond currency management.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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