2025-12-26 14:45:23

The Indian rupee faced notable downward pressure this week as persistent dollar appetite from merchants and forward market participants outweighed the central bank's intervention efforts. Despite policy support aimed at stabilizing the currency, the combination of strong merchant dollar bids and non-deliverable forwards (NDF) market activity proved too influential to contain. This dynamic reflects broader trends in currency markets where organic demand factors can quickly offset official measures. Traders watching rupee movements should note how intervention effectiveness varies with underlying market sentiment—when commercial demand for dollars runs hot, even coordinated support struggles to hold ground. The week's action serves as a reminder that forex dynamics, like crypto volatility, respond to layered supply-demand mechanics that authorities can influence but rarely fully control.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
6
Repost
Share

Comment

0/400

MEVEye

· 4h ago

Damn, the central bank was forcibly held down by the market... This is what on-chain trading feels like.

View OriginalReply0

NightAirdropper

· 4h ago

Ha, to put it simply, it's still a supply and demand game. No matter what the central bank does, it can't withstand the merchants' appetite for US dollars...

View OriginalReply0

SchrodingerGas

· 4h ago

The central bank desperately wants to stabilize the exchange rate, but as a result, the desire for US dollars among traders immediately pushed it down. This is a typical case of game imbalance... Regulatory authorities can never outfight the market's organic demand. The NDF market is in full swing, and central bank interventions are like treating the symptoms without addressing the root cause. Frankly, it's still because the interaction costs are too low. This logic becomes even clearer on the blockchain: when centralized authority encounters decentralized rational economic agents, the outcome is similar.

View OriginalReply0

MissingSats

· 4h ago

Damn, the Reserve Bank of India got beaten again by the market. The merchants just won't buy it.

View OriginalReply0

staking_gramps

· 4h ago

Damn, it's the same old story where the central bank can't beat the market... India is the same, and in our crypto circle, it's even more so every day.

View OriginalReply0

0xLostKey