RBI eases rupee intervention

MUMBAI : The Reserve Bank of India (RBI) has pulled back from active intervention in the currency market, following earlier aggressive defense of the rupee, economists said. The move comes amid escalating conflict in West Asia, which has disrupted global markets and constrained RBI’s policy options. Experts described the step not as a loss of control over the rupee but as a strategic recalibration in response to external shocks, including the prolonged war and its impact on financial stability. RBI’s measured approach seeks to balance domestic market stability with global pressures, allowing policy space to respond to evolving challenges while maintaining confidence in the currency and mitigating volatility in India’s foreign exchange markets.