RBI May Pivot to Buying Dollars to Build Reserves, Analysts Say

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Why This Matters

Analysts predict the RBI may shift its strategy to buying dollars to rebuild foreign-exchange reserves, potentially limiting the rupee's further gains after its recent rally.

Market Impact

Market impact analysis based on neutral sentiment with 80% confidence.

Sentiment
Neutral
AI Confidence
80%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

The rupee’s biggest rally in seven years will give the central bank scope to rebuild its foreign-exchange reserves, potentially limiting further gains after the boost from the India-US trade deal, according to some analysts.

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Original article published by Bloomberg on February 4, 2026.
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