The Indian rupee hovered near 93.3 per dollar, stabilizing after slipping to a three-week low as intervention and tighter oversight by the Reserve Bank of India helped calm volatility. The central bank has been pushing lenders to unwind large arbitrage positions built across domestic and offshore markets, easing dollar demand and helping the currency recover from recent lows. Regulators are now reviewing how banks exited these trades, including whether positions were shifted to corporate clients or related entities instead of being fully closed in the open market. The scrutiny has also curbed speculative activity, helping reduce volatility in the forex market. Separately, markets also digested inflation data showing India’s annual rate rose to 3.4% in March 2026 from 3.21% in the previous month, marking the fastest pace in over a year but slightly below expectations.