The Reserve Bank of India sold at least $5 billion in the spot market before Tuesday’s open, pushing the rupee to a near one-month high as it defended the 95-per-dollar level. USD/INR fell 0.1% to 95.0437 during Asian trading, while one-month non-deliverable forwards declined as much as 0.2% to 95.21. The rupee had gained 0.2% on Monday, surprising traders as dollar selling linked to flows and positioning moved it toward the stronger end of its recent 95.00-to-95.80 range. Strong GDP data provided some support, but traders said gains could prove difficult to sustain and importers may increase hedging. The currency’s longer-term outlook remains pressured by foreign investment withdrawals, elevated oil costs and structural concerns about India’s investment appeal. Foreign portfolio investors withdrew about 2 trillion rupees, or $21 billion, from Indian equities over two months, while Goldman Sachs said overseas investors had sold $53 billion in Indian stocks since September 2024. With India importing nearly 90% of its crude oil, higher prices raise import costs, widen the trade deficit and intensify the RBI’s dilemma over intervention and foreign-exchange reserves.