The Indian rupee is poised to open higher on Wednesday, adding to its recovery over the last two days that was fuelled largely by heavy intervention by the central bank.

The Reserve Bank of India intervened in the foreign exchange market this week to curb speculation in the rupee, according to a person familiar with the central bank’s thinking, surprising traders who expected a more hands-off approach on the currency from the new governor.

(Reuters) -The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.

The Indian rupee rallied on Tuesday on the back of strong intervention by the Reserve Bank of India, which traders said could deter heavy speculative positioning against the currency in the near term.

Projects FY26 inflation at 4.2%, GDP growth at 6.7%

The Reserve Bank of India (NSE:BOI) (RBI) took action in the foreign exchange market this week to limit speculation in the rupee, an unexpected move that caught traders off guard who anticipated a more laissez-faire stance from the new governor,

The Indian rupee rose sharply on Tuesday, aided by the central bank's heavy-handed intervention, which also triggered stop losses for speculators betting against the currency.