The rupee recovered marginally to close at 96.73 against the dollar on Friday, compared with 96.79 on Thursday, after climbing to an intra-day high of 96.51 in the afternoon.
Traders said the central bank intervened heavily in the market, selling dollars through large state-owned banks, helping the rupee touch the intra-day high.
"However there has been an underlying demand for dollars. Companies were seen covering their positions and buying dollars at lower levels," a treasury professional said.
Reserve Bank of India governor Sanjay Malhotra said on Wednesday that the Indian currency was undervalued in terms of the real effective exchange rate and that the central bank would ensure the unit found its correct value.
The RBI regularly intervenes in the spot market, using its forex stockpile to support the rupee, which has been among the worst-performing Asian currencies, having lost about 7% so far this year.
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Rupee rises to intra-day high, then slips on dollar demand
The Indian rupee gained marginally, closing at 96.73 against the dollar on Friday after interventions. The Reserve Bank of India sold dollars through state-owned banks to influence the currency's value. Reserve Bank governor Sanjay Malhotra stated that the currency is undervalued and needs stabilization. Despite this, there remains an overall strong demand for dollars from companies.
- Published by
- The Economic Times
- Published
- Length
- 161 words · 1 min
Where this came from
This story was reported and first published by The Economic Times on 10 October 2026. HUE Legacy Ventures did not write it.
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