The Reserve Bank of India (RBI) was likely intervening in the foreign exchange market on Thursday to stabilize the rupee, which continued to face pressure due to ongoing portfolio outflows and hovered near its record low. The rupee was trading at 88.68 against the US dollar, showing little movement during the day, after hitting an all-time low of 88.7975 earlier in the week. According to traders, state-owned banks were seen selling dollars around the 88.70 level, likely acting on behalf of the central bank.
“There’s some central bank activity around the 88.68–88.70 range, but it appears limited and not aggressive,” said a trader from a state-run bank. Despite the intervention, the rupee remained weak amid subdued market sentiment.
Meanwhile, India’s major stock indices, the BSE Sensex and NSE Nifty 50, were both down by about 0.3% during the session. The decline was led by weakness in IT stocks, which fell around 1%, reflecting broader market caution amid currency volatility and global uncertainty.
