Indian rupee rises as RBI sells dollars near 95

The rupee closed at 95.05 against the dollar, its strongest finish in several sessions, and hovered just below the 95 handle that has become a psychological line for the market. Traders said the central bank’s dollar sales, combined with broader weakness in the greenback, helped sustain demand for the currency.

That move has implications beyond the foreign-exchange market. A steadier rupee eases pressure on the RBI’s inflation fight and reduces hedging costs for importers, while exporters and offshore earners face less favorable translation gains if the currency continues to firm.

At the same time, the support looks tactical rather than structural. Analysts still see the rupee vulnerable if global risk appetite sours or if the dollar strengthens again, with some forecasts pointing to a weaker rupee over the medium term if external pressures build.

For investors, the immediate read-through is that the RBI is determined to limit disorderly currency moves, even if that means leaning more heavily on reserves. Markets will be watching whether the central bank keeps defending the 95 area and how the rupee trades against a dollar backdrop that remains sensitive to US yields and broader emerging-market sentiment.