Rupee Recovers Further, Breaks 90 Level to Reach 89 Against US Dollar

The rupee's upward trend against the US dollar continued on Friday, as it strengthened beyond the 90 mark, reaching 89.96 in early trading. The currency's opening value was 90.1325 per dollar, a roughly 0.1% increase from its previous closing of 90.20 against the dollar.

This appreciation follows a period of record lows for the rupee earlier in the week, during which it even weakened to 91 against the US dollar. The recovery is largely attributed to intervention by the Reserve Bank of India (RBI), which stepped in to sell dollars after the rupee experienced significant and persistent downward pressure.

According to bankers, the RBI's intervention aimed to counter the one-directional depreciation that had developed in the market, prompting the unwinding of bearish positions. Market observers noted that the RBI's recent actions mirrored its approach in October and November, when it intervened multiple times to address ongoing currency weakness by heavily selling dollars in both spot and non-deliverable forward (NDF) markets.

State Bank of India (SBI), in its latest report, has projected a strong rebound for the rupee in the latter half of the next financial year. The country’s largest lender anticipates this recovery to materialize between October 2026 and March 2027. SBI stated that its outlook is informed by historical currency trends and internal analysis, suggesting that the current period of weakness is not structural. The report further noted that the rupee has historically experienced multiple cycles of depreciation and appreciation and is expected to emerge from its current downtrend during the second half of the next fiscal year.