**Rupee Defends Key Level Ahead of Budget** **Friday Market Recap** The Indian rupee witnessed intense volatility in Friday's session, testing a historic low of **92.00** against the US dollar during intraday trade. Despite persistent downward pressure from foreign capital outflows and month-end importer demand, the currency managed to close slightly stronger at **91.9550**. **RBI's Strategic Defense** The Reserve Bank of India (RBI) executed a timely intervention to protect the psychological **92-mark**. * **Dollar Sales:** State-run banks, likely acting on behalf of the central bank, sold dollars aggressively in both spot and non-deliverable forward markets. * **Liquidity Management:** The RBI utilized foreign exchange swaps to manage liquidity, ensuring the currency didn't spiral before the critical Union Budget presentation on **February 1**. **Key Figures & Trends** * **All-Time Low:** The unit briefly touched **92.00** before pulling back. * **Foreign Outflows:** Foreign investors have net sold approximately **$4 billion** in Indian equities this January, weighing heavily on the local unit. * **Reserves Buffer:** India’s forex reserves remain robust, standing at **$709.4 billion** as of January 23, providing ample firepower for further defense. **Market Sentiment** Traders remain cautious as the market prepares for the Union Budget tomorrow. While the **92** level has held for now, the near-term outlook depends on the government's fiscal consolidation path and global dollar dynamics. The pressure remains biased to the downside until foreign inflows stabilize. **Next Watch:** The Union Budget announcement on Sunday, Feb 1, will likely dictate Monday's opening momentum.