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Rupee posts sharpest rally in months as RBI seen selling $3–5B; importer bids cap gains
RBI’s estimated $3–5B FX sale fueled the rupee’s sharpest rally in months; oil and importer demand tempered further gains.
The rupee extended gains after what traders estimate was a $3–5 billion RBI intervention across spot and NDF markets to stabilize the currency. The move sparked the strongest single-day appreciation in months, briefly taking USD/INR toward 87.70 before importer hedging and oil-linked demand curbed upside. Strategists flagged oil prices, the inflation trajectory, and follow-through RBI actions as key drivers into month-end. The intervention underlines a policy preference for limiting volatility while preserving market discovery.