Rupee strengthens against dollar driven by global USD retreat and RBI actions

The Indian rupee appreciated 26 paisa to 86.32/dollar, driven by a global retreat in the USD index and central bank interventions. The Reserve Bank of Indias dollar-rupee swaps impacted forward premiums, with the one-year forward at its lowest since July 2024. Despite volatility and continued pressure from a strong dollar index, a softening trend is expected.