The Reserve Bank of India, in its annual report, said the rupee weakened nearly 10% in FY26 due to trade uncertainties, a wider deficit, the Middle East conflict and FII outflows. RBI intervened in forex markets and expanded measures such as SRVAs and local currency arrangements to stabilise the currency and reduce volatility.

The rupee was down 0.1% at 95.7675 per dollar, with trading in Asia thinned out by a clutch of regional holidays

RBI recorded its biggest forex intervention in FY26, selling a record $53 billion to support the rupee amid tariff fears and capital outflows.