RBI’s weekend move bought some relief, but no end to Re depreciation pressure, says Naveen Mathur

The Indian rupee experienced a brief appreciation after the RBI’s intervention to curb speculative dollar buying. However, structural headwinds like the Middle East conflict, high crude oil prices, FPI outflows, and global rate hikes continue to pressure the currency. The RBI has deployed significant forex reserves, but its ability to intervene indefinitely is limited.