The Indian rupee hovered near 96.4 per dollar, pausing losses after briefly crossing the 97-per-dollar mark for the first time. Softer oil prices offered temporary relief as Brent crude fell more than 5% to near $105 per barrel, while the US 10-year Treasury yield slipped below 4.60%, improving market sentiment. The rupee had remained under pressure, falling nearly 2.5% over nine sessions amid strong dollar demand, rising US yields, and heavy foreign fund outflows. Meanwhile, the central bank has already announced a $5 billion dollar-rupee swap auction scheduled for May 26. The Reserve Bank of India is also reportedly considering measures to stabilize the rupee, including a possible rate hike, additional swap auctions, and schemes to attract foreign currency inflows from non-resident Indians, which officials estimate could bring in up to $50 billion. Markets are now focused on the RBI’s June 3–5 policy meeting for signals on further support measures.
