Rupee rebounds over 1% as RBI intervenes, traders cut dollar positions
The rupee recovered over 1% against the US dollar after Reserve Bank of India intervention, reversing a four-session slide, as traders cut long dollar positions and volatility eased.
- Dec 17, 2025,
- Updated Dec 17, 2025 12:51 PM IST
The rupee staged a significant recovery against the US dollar on Wednesday, strengthening by more than 1% during the session after four consecutive days of record lows. The Reserve Bank of India intervened in the foreign exchange market to address volatility, with state-run banks selling dollars on its behalf. According to dealers, RBI was selling dollars, but the recovery is only partly due to intervention. The market was also veering away from the 91-per-dollar level, with traders cutting long dollar positions.
The rupee, which had opened slightly weaker at 91.07 per dollar compared to the previous close of 91.03, reversed course and traded as strong as 90.25 during the day, as the cooling of crude prices also contributed to improved sentiment.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "The rupee is likely to trade in a 90.50–91.25 range in the near term. Absence of RBI intervention, delays in the India–US trade deal, and continued FII outflows have weighed on the currency. Elevated gold and silver prices have further strained the import bill."
Market participants indicated that the sharp depreciation in the rupee over recent sessions was driven by ongoing foreign portfolio outflows and unresolved India–US trade negotiations. As the currency approached resistance near 91 per dollar and dollar demand waned, stabilisation followed.
Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm said, "The recent move toward the 90–91 zone aligns well with the prevailing slope of this structure and does not indicate any structural deviation. Historically, USD/INR has consistently respected both the upper and lower boundaries of this pattern across multiple market cycles. Each major corrective phase has found support near the lower band before the broader uptrend resumed. The long-term structure remains intact as long as USD/INR stays above the lower boundary of the ascending channel. Within this framework, pullbacks are better interpreted as corrective pauses rather than trend reversals. The dominant chart structure continues to favour a gradual, sustained upswing over time."
The rupee staged a significant recovery against the US dollar on Wednesday, strengthening by more than 1% during the session after four consecutive days of record lows. The Reserve Bank of India intervened in the foreign exchange market to address volatility, with state-run banks selling dollars on its behalf. According to dealers, RBI was selling dollars, but the recovery is only partly due to intervention. The market was also veering away from the 91-per-dollar level, with traders cutting long dollar positions.
The rupee, which had opened slightly weaker at 91.07 per dollar compared to the previous close of 91.03, reversed course and traded as strong as 90.25 during the day, as the cooling of crude prices also contributed to improved sentiment.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "The rupee is likely to trade in a 90.50–91.25 range in the near term. Absence of RBI intervention, delays in the India–US trade deal, and continued FII outflows have weighed on the currency. Elevated gold and silver prices have further strained the import bill."
Market participants indicated that the sharp depreciation in the rupee over recent sessions was driven by ongoing foreign portfolio outflows and unresolved India–US trade negotiations. As the currency approached resistance near 91 per dollar and dollar demand waned, stabilisation followed.
Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm said, "The recent move toward the 90–91 zone aligns well with the prevailing slope of this structure and does not indicate any structural deviation. Historically, USD/INR has consistently respected both the upper and lower boundaries of this pattern across multiple market cycles. Each major corrective phase has found support near the lower band before the broader uptrend resumed. The long-term structure remains intact as long as USD/INR stays above the lower boundary of the ascending channel. Within this framework, pullbacks are better interpreted as corrective pauses rather than trend reversals. The dominant chart structure continues to favour a gradual, sustained upswing over time."