The Indian rupee hovered around 89.6 per USD, trading sideways near three-week highs, supported by a softer dollar and recent central bank measures that helped steady sentiment. The currency has settled into a holding pattern after rebounding from record lows, with the dollar’s slide to a multi-month trough giving the rupee some breathing room, even as traders remain cautious about sustaining gains. Focus has shifted to the forward market after the Reserve Bank of India announced a $10 billion dollar–rupee buy/sell swap, aimed at absorbing excess dollar liquidity in the banking system. The move has already eased pressure on forward premiums, which had surged sharply in recent sessions due to abundant dollar supply and year-end balance sheet constraints. With the swap expected to cool elevated premia, particularly at longer tenors, traders see the RBI’s action as a signal of intent to smooth distortions while keeping spot moves relatively contained.