Reserve Bank of India Intervenes as Rupee Nears Record Low

The Reserve Bank of India intervened in the foreign exchange market on July 24, 2026, to support the rupee and prevent it from hitting a record low of 96.86. State-run banks sold dollars early in the trading session, lifting the currency to 96.50 per U.S. dollar after it had slipped to 96.80. The central bank stated that these interventions are intended only to curb excessive volatility.

The currency's decline was driven by a 7% surge in Brent crude oil prices, which crossed $100 a barrel following Houthi rebel attacks on Saudi oil tankers in the Red Sea. This energy spike coincided with selling pressure in domestic equities and a global flight toward safe-haven assets.

Additional economic pressure came from the United States, where a temporary tariff arrangement expired on July 24 and a new 10% import duty on Indian goods was implemented. Geopolitical instability further compounded market uncertainty, as the U.S. conducted 12 consecutive nights of strikes on Iran. President Donald Trump warned that Iran would be held responsible for the Houthi actions and promised military punishment for both Iran and the militants.