India’s Rupee Rebounds Sharply as RBI Intervenes to Support Currency
March 5, 2026 — The Indian rupee made the largest gains among Asian currencies on Thursday, rallying after hitting a record low against the US dollar in the previous session. The unexpected rebound came as the Reserve Bank of India (RBI) took decisive action to stabilize the currency by selling US dollars in both offshore and onshore markets.
According to sources familiar with the matter, the central bank’s intervention was aimed at curbing the rupee’s recent depreciation, which had raised concerns over inflationary pressures and external vulnerabilities. The rupee strengthened as much as 0.7%, reaching 91.5112 per US dollar, signaling effective RBI efforts to shore up the currency.
The sharp decline of the rupee prior to the rebound reflected a combination of global economic uncertainties and domestic factors impacting investor sentiment. However, the RBI’s prompt response helped restore confidence and limited further erosion of the currency’s value. Market participants viewed the intervention as a clear signal of the central bank’s commitment to maintaining currency stability amid a volatile external environment.
The rupee’s rebound is especially significant given the increasing challenges faced by emerging market currencies. With the RBI actively managing exchange rate pressures, India aims to balance the goals of monetary policy independence and capital flow volatility.
Bloomberg will continue to monitor developments in the Indian currency market and central bank actions as they evolve.
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