Rupee recovers to 96.73 against US dollar after RBI intervention

The rupee recovered to 96.73 per US dollar on Thursday after the Reserve Bank of India undertook heavy intervention in the foreign exchange market. The rebound, however, came against a backdrop of persistent headwinds facing the domestic currency.

Corporate demand for US dollars continues to exert downward pressure on the rupee despite the central bank's support. Year-to-date, the rupee has declined approximately 7%, reflecting broader currency weakness in the Indian forex market.

Falling forex reserves have added to concerns about the rupee's near-term outlook. Analysts point to the combination of capital outflows, strong dollar demand from Indian firms, and dwindling reserve buffers as key factors limiting any sustained recovery in the currency's value.