Opening marginally higher at 87.9350 against the U.S. dollar, the rupee strengthened to 87.78 by the end of trading, up from Friday’s close of 87.9750.

Analysts highlight that the combined intervention by the RBI and state-run banks has helped maintain orderly market conditions, providing reassurance to investors both domestically and internationally.

Market participants indicated that state-owned banks were largely behind the early lift in the rupee, likely acting in coordination with the central bank.

Traders noted that the RBI appears focused on ensuring the rupee remains above the 88-mark, reflecting a proactive approach to currency management and signaling the central bank’s commitment to maintaining stability in foreign exchange markets.

“Market sentiment has improved as the RBI’s intervention demonstrates a clear commitment to keeping the rupee within a manageable range,” said a senior currency trader at a private sector bank.

“The central bank’s proactive measures help reduce volatility and provide a foundation for both corporate and investor confidence.”

Last week, the RBI conducted pre-market interventions on multiple occasions to prevent the rupee from sliding past record lows, selling U.S. dollars to counter speculative positions and restore market balance.

These actions helped stabilize the currency while also signaling the central bank’s readiness to act decisively to manage short-term pressures.

Analysts note that such interventions are viewed positively by global investors, reflecting the strength of India’s macroeconomic framework.

In addition to RBI support, equity market inflows have contributed to a positive outlook for the rupee. Foreign portfolio investors have been net buyers of over $1 billion in the past week, providing additional liquidity and reinforcing sentiment.

The combination of central bank support and robust equity inflows has enhanced confidence in the rupee, even as corporate demand for dollars continues to influence short-term movements.

“The recent equity inflows are complementing the RBI’s actions, offering a supportive backdrop for the rupee,” noted the trader. “These factors together are encouraging a balanced and resilient foreign exchange environment.”

Despite international developments, including comments from U.S. President Donald Trump regarding Indian oil imports from Russia, the rupee remained largely unaffected.

Analysts highlight that the currency’s performance is being driven primarily by domestic factors, including RBI interventions and strong capital inflows, rather than external geopolitical commentary.

The rupee’s recent strength is also being viewed positively in terms of broader economic implications. A stable currency supports investor confidence, facilitates trade, and helps maintain predictable input costs for Indian businesses.

By keeping fluctuations in check, the RBI is playing a key role in ensuring that India’s foreign exchange environment remains supportive of growth and investment.

Looking ahead, the rupee is expected to continue benefitting from a combination of central bank guidance, ongoing equity inflows, and overall macroeconomic stability.

Analysts suggest that the RBI’s careful management, combined with market-driven support, positions the currency for measured gains and reduced volatility.

This environment offers reassurance to international investors and businesses engaging with India, enhancing the country’s appeal as a stable destination for trade and investment.

Overall, the recent rupee gains highlight India’s ability to manage short-term pressures through coordinated policy measures and market support.

With the RBI anchoring sentiment and foreign investment flows contributing to liquidity, the rupee’s stability underscores the resilience of India’s financial markets and the effectiveness of proactive currency management in fostering investor confidence.

The two allies agreed that Seoul does not fall under the manipulator designation that the U.S. Treasury Department announces in reports twice a year, Kang Yu-jung told a press conference

Officials at the U.S. embassy in Seoul could not be reached for comment outside business hours.

The administration of President Joe Biden added South Korea to a manipulation monitoring list in November due to its large current account surplus and its sizable trade surplus with the U.S. The government of Donald Trumpkept Seoul on the list in June.

Under a 2015 U.S. law,Washington can take “remedial action” against countries that do not “correct the undervaluation of their currency and trade surplus with the United States”.

The South Korea-U.S. deal is not related to talks on a currency swap as part of bilateral negotiations over Trump’s tariffs on South Korean goods, South Korean officials said.

President Lee told Treasury Secretary Scott Bessent on Wednesday in New York that the Asian country needs a foreign exchange swap in order to make the $350 billion investment it has pledged in the tariff talks, Finance Minister Koo Yun-cheol said on Saturday.

Koo quoted Bessent as saying he would discuss the issue with other U.S. officials and get back to South Korea.

South Korean National Security Adviser Wi Sung-lac reiterated on Saturday that Seoul cannot pay the $350 billion “upfront”, as Trump has suggested in recent days. President Lee told Reuters this month that South Korea’s economy could fall into crisis rivalling its 1997 meltdown if the government accepted the U.S. demands without safeguards.

Koo said he had not heard anything about a Wall Street Journal report that Commerce Secretary Howard Lutnick had discussed raising the $350 billion investment.