The rupee slid 3 paise to 95.97 against the dollar early Wednesday, after opening at 95.87. The move sent the currency precariously close to the psychological 96‑per‑dollar line that traders watch.
State‑run banks on behalf of the RBI sold dollars in both spot and forward markets, tightening the USD/INR pair. Meanwhile, foreign portfolio investors drained about $2.2 bn from Indian assets this month, a figure that weighed heavily on the currency.
Brent crude climbed to $103.43 a barrel, adding to the pressure, while the dollar index edged up to 101.40. RBI’s latest weekly reserve dip of $14.9 bn to $766 bn reflects the central bank’s active intervention.
Anindya Banerjee, head of commodity and currency research at Kotak Securities, said the dollar sales were "consistent with sizeable intervention" and that "firm US yields keep the pair under pressure." A trader in Mumbai, watching the feed, said he had to pause his day job to monitor the rupee’s wobble.