What specific measures did the Reserve Bank of India announce to support the rupee, and how do analysts expect them to affect USD/INR in the short term?

The Reserve Bank of India announced two key measures: allowing leverage for NRI (Non-Resident Indian) deposits and offering a discounted swap facility for banks' overseas borrowings. Analysts at Citi stated that these steps are expected to drive dollar inflows, reduce market concerns about India's balance-of-payments risks, and help build foreign exchange reserves — leading them to anticipate USD/INR moving toward 93 in the short run.

How have major investment banks revised their rupee depreciation forecasts following the RBI's intervention, and what were their previous estimates?

Goldman Sachs pushed forward its forecast of the rupee reaching 97 per dollar from 3 months to 12 months, indicating reduced near-term depreciation pressure. MUFG revised its expectation for the rupee’s level by end-September to around 94, up from 95.80 earlier. Citi also adjusted its one-month forecast downward from 97.90 (as per a June 3 Reuters poll) to a more stable trajectory following the announcement.