The Indian rupee surged over 1% on February 11 to the 87 mark against the US dollar, its strongest rally in two years, potentially aided by the Reserve Bank of India. Opening at 87.35, it then strengthened to 87.0750. This increase, the largest since November 2022, positioned the rupee as the top performer in Asia on that Tuesday.
On February 10, the Indian rupee dropped to 87.9563 against the US dollar following Trump’s tariff announcement. Despite this, RBI’s intervention stabilized the currency. Anindya Banerjee from Kotak Securities mentioned that the RBI had been heavily supporting the rupee since yesterday to prevent further decline.
Prime Minister Narendra Modi’s upcoming two-day visit to the US on February 12 and 13 may influence the rupee’s performance and aims to bolster technology, trade, defense, energy, and supply chain resilience in bilateral relations with a focus on building upon past successes with Trump.
In early trade on February 11, the rupee made a notable 72 paise recovery against the dollar, likely due to RBI’s intervention. By 10:50am, it hit its highest level since January 31, at 86.6362, opening at 87.3500. This aligns with RBI Governor Sanjay Malhotra’s comments on forex market intervention during the February 8 policy review, focusing on stabilizing excessive volatility over fixed exchange rate goals.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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