RBI Intervention Triggers 1.51% Drop in USD/INR to Support Rupee

Key Facts

The USD/INR pair traded 1.51% lower following direct intervention by the Reserve Bank of India (RBI) in the foreign exchange market. InvestingCube reported that the central bank ramped up its intervention mechanism to reduce speculative positioning and dollar demand, sending the pair toward the 95.2700 level after an intraday high of 95.7600.

This action follows the RBI's decision on October 7, 2026, to raise the policy repo rate by 25 basis points to 5.50%, marking the first hike since February 2023 to combat rising food and energy costs. While the intervention supported the rupee, external pressures remain from elevated oil prices and US bond yields, with technical support holding at 95.24 and resistance noted at the 96.00 psychological barrier reached on October 12, 2026.