Indian Rupee Rebounds After RBI Intervention and Crude Price Drop

The Reserve Bank of India intervened in currency markets to stabilize the rupee after it neared a record low of 95.00 per US dollar on June 24, 2026. The currency had been pressured by a firming US dollar index and a hawkish stance from the US Federal Reserve, which drove the dollar to a one-year high of 101.50.

By June 25, the rupee reversed its decline, opening 37 paise higher at 94.30 and strengthening further to 94.24 in early trade. This recovery was fueled by a significant drop in Brent crude prices, which fell to approximately $72.28 per barrel following a ceasefire accord involving the US, Israel, and Iran. Markets began pricing in a normalization of shipping traffic through the Strait of Hormuz, easing inflationary pressures.

To curb volatility, the central bank suspectedly conducted dollar sales via nationalized banks. Governor Sanjay Malhotra supported the recovery through public comments aimed at lowering forward premium levels, stating that the bank does not target a specific exchange rate and that it remains premature to discuss domestic interest rate hikes.