SBI Research urges RBI rupee intervention
Analysis based on 8 articles · First reported May 31, 2026 · Last updated May 31, 2026
The depreciation of the India — Indian rupee>>> against the United States>>> could lead to increased import costs for India>>> and potentially fuel inflation. Stronger intervention by the State Bank of India>>> could stabilize the currency, impacting foreign exchange markets and investor confidence in India>>>n assets.
SBI Research has issued a report urging the State Bank of India>>> to implement stronger and more sustained intervention to stabilize the India — Indian rupee>>>. The report highlights the 'reckless' and 'unusually sharp' depreciation of the India — Indian rupee>>> against the United States>>>, noting a Rs 5 per dollar decline in 152 days, reaching 96.83 on May 20. SBI Research contends that this depreciation is excessive and not justified by India>>>'s strong macroeconomic fundamentals. While India>>>'s foreign exchange reserves have decreased by USD 47 billion since February 27, 2026, they remain substantial at around USD 680 billion, providing ample room for intervention. The report attributes the India — Indian rupee>>>'s weakness to global United States>>> strength, risk aversion due to the West Asia>>> conflict, and significant foreign portfolio outflows of USD 22.7 billion from India>>>n equities. SBI Research also suggests the India — Indian rupee>>> is currently undervalued and expects the State Bank of India>>> to maintain current policy rates at the upcoming Monetary Policy Committee meeting.
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