Central Bank’s Bold Measures Stabilize Currency, Curb Speculation
February 15, 2025: Mumbai: The Indian rupee recorded its strongest weekly gain in 19 months, buoyed by aggressive intervention from the Reserve Bank of India (RBI). The currency ended at 86.8225 per U.S. dollar, marking a 0.7% increase over the week, the sharpest rise since mid-July 2023.
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The RBI actively sold dollars in the spot market throughout the week, countering a slump that saw the rupee hit an all-time low of 87.95 on Monday. Reports from DBS Bank and Goldman Sachs suggest that the central bank offloaded $10-11 billion, surprising the forex market.
Key Highlights:
✔ Rupee rebounds after touching a record low of 87.95 on Monday
✔ RBI’s intervention curbs volatility, stabilizing the currency
✔ Forex analysts predict a near-term trading range of 86.60–87.20
✔ Dollar index drops 0.8%, providing relief to Asian currencies
Amit Pabari, Managing Director at CR Forex, noted that the RBI’s decisive action is likely to keep the rupee on firmer ground, preventing excessive depreciation.
Meanwhile, the global market reacted to U.S. President Donald Trump’s reciprocal tariff plans, which sparked concerns over a potential trade war. However, the delayed implementation of these tariffs provided a temporary boost to Asian currencies.
Also Read: Trump Hails “Wonderful Trade Deals” As He Meets “Great Leader” PM Modi At White House
With Indian economic growth slowing and foreign investors pulling out of local stocks, the RBI’s intervention signals a strategic effort to maintain stability amid rising global uncertainties.
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