New Delhi, March 4 -- Despite significant foreign portfolio investor (FPI) outflows in February, the rupee managed to avoid sharp depreciation, because of a stable US dollar and the Reserve Bank of India's (RBI) active intervention, according to a report by Bank of Baroda.

The report highlighted that the rupee weakened by one per cent in February 2025, following a 1.2 per cent decline in January.

It said "Despite the extent of FPI outflows, a benign dollar and RBI's deft intervention has kept a lid on INR's slide"

The depreciation of the Indian rupee is primarily driven by external factors, particularly the US Federal Reserve's policy stance and concerns over higher tariffs on Indian exports by the new US administration. These factors ...