Rupee hits one-week high as RBI moves to stem in fall

The Indian rupee strengthened to a one-week high on Friday, supported by steps taken by the Reserve Bank of India (RBI) to limit the impact of dollar buying by state-run oil refiners.The currency rose 0.5% to 92.7250 per dollar by 10:50 am, marking its strongest level since April 10. Traders said the move followed a Reuters report that the central bank had urged state-run refiners to use a special credit line for their foreign exchange requirements instead of purchasing dollars in the spot market.The measure is seen as part of a broader strategy to stabilise the rupee, which has been under pressure due to elevated global energy prices and weak capital inflows. The RBI has deployed a combination of regulatory tools, including caps on banks’ net open foreign exchange positions and curbs on non-deliverable forwards (NDFs), alongside the new facility for refiners.“These steps signal one clear message: the RBI is actively defending the rupee in a challenging environment,” Amit Pabari of CR Forex said, as quoted by Reuters.The rupee has recovered about 2.5% from its record low hit in late March, aided by these interventions.Meanwhile, global cues remain crucial. Markets are closely watching developments around the Iran conflict, with a 10-day ceasefire between Lebanon and Israel taking effect and US President Donald Trump indicating possible talks with Iran over the weekend.