Indian Rupee: RBI interventions cap losses against US Dollar – Societe Generale

FXStreet Insights Team FXStreet

Societe Generale reports USD/INR has repeatedly tested 96.00 but failed to break higher as the Reserve Bank of India (RBI) maintained a visible presence in the FX market through interventions. Deputy Governor Poonam Gupta sounded optimistic that the Rupee could stabilise and possibly appreciate, while domestic PMIs improved even as higher Oil prices and global yields pushed the 10-year IGB yield near its May peak.

Rupee supported by RBI actions

"In India, USD/INR repeatedly tested 96.00 but failed to break higher as the RBI maintained a visible presence in the FX market via interventions."

"Deputy Governor Poonam Gupta struck an optimistic tone, suggesting the rupee could stabilise and potentially appreciate from current levels."

"Domestic activity data were encouraging, with both manufacturing and services PMIs moving higher."

"Still, higher oil prices and rising global yields continued to pressure local rates, pushing the 10y IGB yield within 1bp of its May high 7.143%."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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