RBI’s Stabilisation Strategy: How India Is Managing Currency Pressure- According to experts and global trend analysts, the rupee’s position near 95.24 per US dollar in May 2026 reflects sustained pressure from rising crude oil prices and global geopolitical tensions. According to reports, the Reserve Bank of India (RBI) has taken a bold and proactive step by intervening directly in the currency market to slow the fall and prevent further sharp depreciation, making the situation relatively less stressful for the economy.
Instead of allowing uncontrolled movement, the RBI has stepped in with a clear stabilisation strategy. This includes direct dollar selling through state-run banks to absorb excess pressure, along with a strict cap of $100 million on banks’ net open positions to reduce speculative trading. In addition, tighter controls on non-deliverable forward (NDF) contracts and restrictions on rebooking cancelled forwards are aimed at reducing excessive volatility. In simple terms, the RBI is acting like a stabiliser, not stopping the trend completely, but ensuring the rupee does not slide into panic-driven free fall.
RBI Intervention Strategy
The RBI has adopted a multi-layered approach to defend the rupee:
- Direct dollar selling through state-run banks to control sharp depreciation
- Cap of $100 million on banks’ net open positions to reduce speculative trading
- Restrictions on certain non-deliverable forward (NDF) contracts
- Measures to limit rebooking of cancelled forward contracts
These steps aim to reduce speculation and stabilize currency movements.
USD to INR – Last 15 Days
| Date | High (₹) | Low (₹) | Close/Current (₹) |
|---|---|---|---|
| May 11 | 95.16 | 94.25 | 95.24 |
| May 10 | 94.60 | 93.94 | 94.43 |
| May 09 | 94.54 | 94.41 | 94.47 |
| May 08 | 94.80 | 94.19 | 94.44 |
| May 07 | 94.91 | 93.99 | 94.25 |
| May 06 | 95.23 | 94.07 | 94.56 |
| May 05 | 95.47 | 94.96 | 95.13 |
| May 04 | 95.48 | 94.77 | 95.24 |
| May 03 | 95.06 | 94.82 | 94.94 |
| May 02 | 94.94 | 94.78 | 94.84 |
| May 01 | 95.23 | 94.67 | 94.91 |
| Apr 30 | 95.35 | 94.67 | 94.81 |
| Apr 29 | 94.97 | 94.52 | 94.89 |
| Apr 28 | 94.77 | 94.15 | 94.60 |
| Apr 27 | 94.33 | 94.02 | 94.25 |
Rupee Volatility: Market Under Pressure
The Indian rupee went on a 15-day roller coaster, oscillating between 94.25 to 95.26 per US dollar, briefly hitting 95.48 on May 4, before RBI took over to calm the ride. Calm was disturbed by oil staying above $105, foreign investor outflows and the Middle East flare-up. Tiny catch-ups didn’t last long, as the dollar pulled the rupee down. RBI acted as a shock absorber, attempting to cushion the ride, but global forces continued rattling sentiment. Bottom line, the rupee was not only weak, but was on a constant edge.
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Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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