USD/INR: Rupee Gains Close to 1% Against Dollar, Hits 87 Mark Following RBI Intervention

The Indian rupee experienced a sharp rally, surging nearly 1% against the US dollar on Tuesday, its most significant rise in over two years. At 12:30 PM, the USD/INR spot rate was 86.88, trading 0.68% lower.

The surge, which took the rupee back above the 87 mark for the first time since January 31, was largely attributed to the Reserve Bank of India’s (RBI) intervention, as per news reports.

Strong Dollar Index and Weak Asian Peers

This rebound comes even as other Asian currencies have weakened, and the dollar index held steady at 108.3. The rupee has faced downward pressure in 2025, impacted by concerns about trade wars, foreign stock market sales, and changes in RBI policies.

On Monday, the rupee had dropped 45 paise, nearing the 88 per US dollar mark, pressured by the strength of the American currency and tariff concerns. However, it later recovered, gaining 5 paise to close at 87.45, thanks to intervention by the RBI.

Oil Prices Edge Higher Amid Russian Production Shortfall

Oil prices continued to rise on Tuesday, supported by a report showing that Russian oil production fell short of its quota, as well as concerns over potential supply disruptions.

However, the gains were capped by fears that escalating trade tariffs could slow global economic growth.

Brent crude futures rose by 0.32% to $76.11 per barrel, while US West Texas Intermediate crude increased by 0.26% to $72.51. Both contracts had posted gains of nearly 2% in the previous session, after three consecutive weeks of losses.

Disruptions in Russian oil shipments to major crude importers like China and India, caused by US sanctions on tankers, producers, and insurers, have heightened concerns over supply.

Additionally, the re-imposition of US sanctions targeting Iranian oil exports to China has further added to supply worries.

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