RBI Intervention Stabilizes Rupee Amid Global Pressure, Trade Uncertainty

• Indian Rupee showed stability against the US dollar in early trade on Thursday, December 18, supported by RBI intervention.
• RBI intervened through public sector banks selling dollars, with estimates suggesting up to USD 6 billion.
• Global risk aversion, India-US trade talk uncertainty, and persistent importer demand capped further gains for the rupee.
• Rising Brent crude prices and a stronger dollar index added pressure, but foreign institutional investors remained net buyers.
• Experts like N. Arunagiri state current volatility reflects valuation adjustments, not a decline in India's macro stability.

Why It Matters: RBI's timely intervention and underlying macro stability helped stabilize the rupee despite global headwinds.