India’s rupee surged nearly 1% on Tuesday, its biggest gain since 2022, after suspected central bank intervention. The move caught traders off guard as the currency had recently hit record lows.
DBS Bank’s Ashhish Vaidya called it a “smart move” by the Reserve Bank of India (RBI), likely aimed at stabilizing volatility. Since taking office in December, RBI Governor Sanjay Malhotra has allowed more currency flexibility but maintains that interventions target excessive swings, not specific exchange rates.
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The rupee’s sharp rise triggered stop-losses, forcing traders to close dollar bets. Estimates suggest the RBI sold up to $11 billion in two days.
The rally comes just before Prime Minister Modi’s meeting with Donald Trump, which could influence trade policies and market sentiment.
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