Reserve Bank of India Intervenes as Rupee Hits Record Low

The Reserve Bank of India intervened in the foreign exchange market on July 24, 2026, to prevent the rupee from reaching a new record low. The currency initially weakened to 96.81 against the U.S. dollar, pressured by heavy importer demand, foreign institutional investor outflows, and a global shift toward safe-haven assets. Following dollar sales by state-run banks, the rupee recovered to close at 96.55.

Economic instability was driven by Brent crude oil prices surging 7% to exceed $100 per barrel. This spike followed Houthi rebel attacks on Saudi oil tankers in the Red Sea and a 13-night streak of U.S. military strikes against Iran. Market volatility was further compounded by the Trump administration imposing a 10% import duty on Indian goods as part of a broader tariff plan targeting 60 trading partners.

These combined pressures triggered five consecutive sessions of losses for the Indian stock market, with the Sensex closing at 76,059.77 and the Nifty 50 at 23,767.45 on July 24. While the central bank worked to curb excessive volatility, geopolitical tensions remained high as Iran rejected a U.S. ceasefire proposal delivered via the Iraqi Prime Minister.