Rupee opens 6 paise weaker as dollar demand from oil importers hits

State-run banks were spotted offering dollars on behalf of the Reserve Bank of India around the 87.02 level, two traders said, a sign the central bank was smoothing the move rather than defending a specific line. The RBI has sold dollars in most sessions this month, keeping the rupee's decline gradual.

The local unit has lost about 1.5% against the dollar so far in 2025, tracking a broader selloff in emerging-market currencies as US rates stay elevated. Foreign portfolio outflows from Indian equities added to the pressure, with overseas investors pulling $2.8 billion from stocks in February, exchange data showed.

Traders said the rupee's range this week would hinge on the RBI's intervention intensity and the outcome of US nonfarm payrolls data due Friday.