The Indian Rupee (INR) has recently shown signs of resilience following intervention measures by the Reserve Bank of India (RBI) on October 15, 2025. The RBI sold between $3 billion to $5 billion in the foreign exchange market to stabilize the rupee, responding to pressures from U.S. tariffs and increased gold imports. This intervention resulted in the rupee experiencing its largest single-day gain in four months, generating a more positive market sentiment.
Analysts noted a notable change in the options market, with the 1-month 25-delta risk-reversal for the USD/INR pair dropping to -0.8, marking the lowest level since 2012. This shift points to increased demand for rupee call options, indicating growing confidence in the rupee's performance in the near term.
However, ongoing trade tensions between the U.S. and India continue to pose challenges. The U.S. imposed significant tariffs on Indian exports in August, which has created an environment of uncertainty and further strain on trade relations. Consequently, the U.S. dollar remains a key factor influencing INR valuation as the Federal Reserve’s monetary policy continues to exert pressure on the rupee.
Current exchange rates show INR to USD trading near 14-day lows at approximately 0.011263, slightly below the three-month average. The pair has demonstrated a stable 2.1% range during this period. Conversely, INR to EUR is trading at 0.009769, just above its three-month average, while INR to GBP is showing strength at 0.008574, 1.5% higher than its average. Furthermore, INR to JPY is at 1.7366, exceeding its average by 2.6%.
Overall, while the RBI’s intervention has provided some short-term support to the INR, external economic factors and trade dynamics remain pivotal in shaping its trajectory. Stakeholders should remain vigilant to monitor these developments as they navigate international transactions.
