Reserve Bank of India Intervenes to Stabilize Rupee

The Reserve Bank of India intervened in the foreign exchange market on October 6, 2026, to support the national currency and manage banking liquidity. The action followed a slide in the rupee, which reached a two-month low of 96.43 per dollar.

Traders reported that state-run banks offered dollars on behalf of the central bank to prevent further depreciation. Simultaneously, the central bank likely conducted dollar-rupee sell/buy swaps to drain excess cash from the banking system.

These measures resulted in a marginal recovery of the rupee to 96.41 per dollar. The intervention also caused dollar-rupee forward premiums to rise, with the June 2027 premium increasing by eight paisa to 2.56 rupees.