The Reserve Bank of India (RBI) is considering all available tools to stabilize the rupee, such as raising interest rates, currency swaps, and attracting dollar inflows from overseas investors, sources said [1, 2].
The rupee fell to a fresh low of nearly 97 against the US dollar on May 21, intensifying concerns over currency weakness [1]. This drop prompted internal discussions at the RBI involving top officials including Governor Sanjay Malhotra on possible interventions to support the currency [1].
The decline to 97 per dollar marks a new historic low, reflecting pressure on the rupee in recent weeks [1]. While the RBI has multiple tools at its disposal, officials are carefully weighing the impact of interest rate hikes amid a challenging global economic environment [1, 2].
Currency swaps and increasing dollar inflows from foreign investors are among the other options being reviewed to boost reserves and enhance liquidity [2]. Governor Malhotra and his team have held several internal meetings to assess how best to respond to the rupee’s slide [1].
The RBI’s next monetary policy review is scheduled later this month, where formal measures may be announced depending on the rupee’s trajectory and broader economic signals. Market participants will closely watch for signs of any policy adjustments aimed at restoring stability to the currency.
