The Reserve ​Bank of ‌India (RBI) is considering ​all ⁠its available options to stabilise the rupee, including an ‌interest ‌rate ⁠hike, Bloomberg ⁠News reported on Thursday (May 21, 2026), citing people ​familiar ‌with the matter.

Top officials at the ‌RBI, including ​Governor Sanjay Malhotra, have ⁠held a series of ‌internal meetings to discuss the course of action ‌after the plunge ​in the rupee, ⁠the report said.

This comes after the rupee made a new low of 96.95 on Wednesday (May 20, 2026), and later closed at 96.86, which was also a new closing low as demand for dollars continued with the dollar index higher and crude oil prices remaining on the higher side.

The rupee recovered 41 paise from its all-time closing low to 96.45 against the U.S. dollar in early trade on Thursday (May 21), after U.S. President Donald Trump indicated that negotiations with Iran were entering the final stages.

Investors are still gauging the geopolitical risk and oil price sensitivity in the background with any flare-up in West Asia tensions or spikes in crude, forex traders said.

At the interbank foreign exchange market, the rupee opened at 96.25 against the U.S. dollar, then touched 96.45 in early trade, up 41 paise from its all-time lifetime low of 96.86 against the U.S. dollar on Wednesday.