Reserve Bank of India Intervenes to Stabilize Rupee

The Reserve Bank of India intervened in the foreign exchange market on October 9, 2026, to stabilize the Indian rupee, which opened steady at 96.78 against the US dollar. This action followed a period of significant currency pressure triggered by the central bank's October 7 monetary policy decision to raise the key repo rate by 25 basis points to 5.5 percent and adopt a stance of calibrated tightening.

While a softer US dollar and declining Treasury yields provided temporary relief, the rupee remains vulnerable to elevated crude oil prices and foreign portfolio outflows. Brent crude recently hit an intraday high of $106 before retreating after US President Donald Trump stated that Washington would not attack Iran before next month's mid-term elections, citing progress in talks to end the conflict.