The Reserve Bank of India’s August policy meeting produced a neutral outcome for the Indian Rupee, according to Societe Generale analysts Kunal Kundu and Galvin Chia. The central bank provided minimal commentary on currency movements and capital flows during the announcement, marking a notably restrained approach to rupee guidance. However, RBI Governor Malhotra reiterated his position that the INR is not undervalued at current levels, signaling the bank’s comfort with recent exchange rate positioning.
The analysis suggests the RBI is actively defending the 97 level against the dollar as a key technical band for onshore markets. This defensive stance comes amid broader emerging market currency volatility and shifting dollar dynamics. Traders should watch for intervention signals if USD/INR approaches or breaches this threshold, as the central bank has demonstrated willingness to deploy reserves to maintain stability within preferred ranges.
FXnCO Insight
Position for range-bound INR trading with 97.00 as the critical resistance level where RBI intervention becomes increasingly likely.
Source: FXStreet