India's central bank intervened in foreign exchange markets to support the rupee after it weakened toward a record low amid surging crude prices. The rupee closed at 96.28 versus the dollar, logging its sharpest weekly drop since May as Middle East tensions stoked dollar demand. The currency hit an intraday low of 96.38, where RBI intervention contained further decline, traders said.

The rupee has depreciated 1.4% this fiscal year, sliding to an eight-week low. Meanwhile, India's forex reserves rose $964 million to $675.16 billion for the week ended July 10. Governor Sanjay Malhotra noted the rupee remains stable globally despite West Asia crisis and weak monsoon risks.

The RBI projects 6.6% GDP growth for FY27 but raised inflation forecast to 5.1%. State-run banks' interventions provided temporary relief as market participants monitor oil prices and the central bank's approach to depreciation.