The Indian rupee has faced pressure in recent months due to high oil prices and money flowing out of Indian markets. The Reserve Bank of India (RBI) has taken several steps to support the currency and control demand for US dollars.
The rupee closed at 94.95 against the US dollar on Friday, compared with 95.26 in the previous session. It also gained around 1% in October, marking its best monthly performance since February.
The RBI introduced steps to reduce dollar demand from oil companies and limit currency speculation. It also changed rules for currency hedging and took steps to attract more foreign investment.
In October, the central bank raised interest rates for the first time in nearly four years. It also signalled that more increases could follow.
These measures helped the rupee perform better than most Asian currencies during October. However, high oil prices and continued foreign fund outflows remain key risks.
