Rupee set to weaken as oil prices pressure RBI support

The currency in India is expected to open at a lower valuation this Friday, following a session where heavy central bank intervention provided a temporary boost. While the rupee strengthened 0.6% to close at 91.60 on Thursday, 1-month non-deliverable forwards indicate an opening range between 91.64 and 91.68 against the U.S. dollar. Market participants noted that the previous day's gains were driven by the central bank's aggressive dollar sales before the local market opened, a tactic that often yields only short-term results.

These kind of interventions change the tone temporarily and usually do not alter the broader trend without the support of other factors.