RBI Intervention Fuels Rupee's Biggest Single-Day Gain in 7 Months

• The Reserve Bank of India's heavy intervention on December 17 led to the rupee's strongest intraday recovery in seven months.
• Sustained dollar selling by state-owned banks, acting on behalf of the RBI, stabilized market sentiment and eased volatility.
• The rupee rebounded 1.03% to 90.0963 against the US dollar, marking its highest appreciation since May 23, 2025.
• The intervention snapped a prolonged period of weakness caused by dollar demand, trade deal delays, and foreign investor outflows.
• RBI also infused Rs 45,000 crore via a swap and plans to inject another Rs 50,000 crore by buying bonds.

Why It Matters: RBI's strong intervention successfully reversed the rupee's decline, leading to a significant recovery.