Despite all the turbulence witnessed in the offshore market, industry insiders anticipate continued intervention by the Reserve Bank of India to avert any sudden shifts in the local currency market. According to analysis, the Reserve Bank of India has often resorted to using its forex reserve to avert volatility in the rupee.
According to analysts, the RBI would not permit any significant devaluation unless the global situation worsened.
The over the next few weeks will be influenced by the dollar, crude oil prices, and actions by major central banks, especially the US Federal Reserve.