Indian rupee on defensive, likely central bank intervention limits losses

A man counts Indian currency notes at a roadside currency exchange stall in the old quarters of Delhi, India, February 2, 2026. REUTERS/Anushree Fadnavis · Reuters

By Jaspreet Kalra and Dharamraj Dhutia

Tue, 24 February 2026 at 2:28 pm GMT+9 2 min read

In this article:

INR=X

-0.05%

INRUSD=X

+0.05%

By Jaspreet Kalra and Dharamraj Dhutia

MUMBAI, Feb 24 (Reuters) - The Indian rupee edged lower on Tuesday as strong dollar demand from ‌non-deliverable forwards (NDF) contract maturities and portfolio outflows weighed, though likely ‌central bank intervention capped losses.

The rupee declined a modest 0.1% to 90.95 per dollar, as ​of 10:50 a.m. IST.

Indian equities, though, were trading with deeper cuts. The benchmark Nifty 50 fell nearly 1% despite the MSCI’s gauge of Asian shares edging up.

Strong interbank dollar demand, maturing positions in the NDF market, and ‌an uptick in speculative ⁠positioning were among the factors cited by traders behind the pressure on the rupee, which was blunted by the ⁠Reserve Bank of India’s presence in the market.

“The unwinding process could generate fresh dollar demand in the spot market, adding incremental (upward) pressure on USD/INR,” said ​Amit Pabari, ​managing director at forex advisory firm ​CR Forex, referring to the ‌maturing positions.

The currency has had to lean on central bank interventions to cushion its decline over recent weeks, as the boost from a U.S.-India trade deal proved short-lived.

The U.S. Supreme Court’s decision to strike down the flagship levies imposed by the Trump administration has injected a fresh dose ‌of uncertainty.

LARGE INTERVENTION FOOTPRINT

The central bank’s interventions ​are a continuation of its efforts to ​support the rupee, which was ​the worst-performing emerging-market currency in 2025.

Over the course of ‌last year, the RBI sold a ​net of $51.7 billion, which ​likely helped slow the rupee’s slide, as it fell about 5%, hurt by persistent foreign portfolio outflows and ongoing trade frictions ​with the U.S.

Analysts reckon ‌the central bank will remain active in the market to prevent ​excessive volatility in the currency going ahead as well.

(Reporting by ​Jaspreet Kalra; Editing by Rashmi Aich)

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