RBI considers rate hike as rupee slumps: reports
The Reserve Bank of India is exploring options to stabilize the rupee, including a potential interest rate hike. This consideration follows the rupee's recent decline, hitting a record low against the U.S. dollar. The currency showed some recovery in early trading after positive news regarding U.S.-Iran negotiations.
- ▪The rupee reached a new low of 96.95 on May 20, 2026.
- ▪RBI officials have been holding internal meetings to discuss the situation.
- ▪The rupee recovered to 96.45 against the U.S. dollar in early trade on May 21, 2026.
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The Reserve Bank of India (RBI) is considering all its available options to stabilise the rupee, including an interest rate hike, Bloomberg News reported on Thursday (May 21, 2026), citing people familiar with the matter.Top officials at the RBI, including Governor Sanjay Malhotra, have held a series of internal meetings to discuss the course of action after the plunge in the rupee, the report said.This comes after the rupee made a new low of 96.95 on Wednesday (May 20, 2026), and later closed at 96.86, which was also a new closing low as demand for dollars continued with the dollar index higher and crude oil prices remaining on the higher side.The rupee recovered 41 paise from its all-time closing low to 96.45 against the U.S.
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