Rupee Stages Comeback After Five-Day Slide
The Indian rupee snapped a five-day losing streak on Wednesday, December 17, 2025, registering a notable recovery against the US dollar. The domestic currency closed at 90.38 against the US dollar, marking a gain of 55 paise from its previous all-time low level.
Central Bank Action Suspected Behind Rebound
Market analysts pointed towards aggressive measures from the country's central bank as the primary driver for the rupee's appreciation. Dilip Parmar, Research Analyst at HDFC Securities, commented that the rupee's strength was bolstered by suspected aggressive intervention from the Reserve Bank of India (RBI). This move is seen as a strategic effort to curb excessive volatility and support the local currency after a sustained period of depreciation.
Market Sentiment and Future Outlook
The sharp recovery provided much-needed relief to the forex market and importers. The intervention signals the central bank's commitment to maintaining stability in the currency market. While the immediate pressure has eased, traders will continue to monitor global dollar strength and domestic economic indicators for further cues on the rupee's trajectory. The day's closing at 90.38 sets a new baseline for the currency as it moves forward from its record-low levels.
