It’s because the RBI pulled a clever trick to stop companies from making things worse. Oil firms were buying dollars in panic, fearing the rupee would keep falling. That panic actually made the rupee fall more. Sound familiar? It’s like everyone running to withdraw money from a bank; and that’s what causes the bank to collapse. The RBI stepped in with quiet, technical moves: making hedging costlier, limiting rebooking of cancelled deals, and forcing banks to hold more cash against forex contracts. The result? Immediate relief. Rupee up. Asia’s top performer Monday. But here’s the catch: inflation’s also rising; 5.54% in September, food inflation at 7.74%. So while the RBI fixed the panic for now, the bigger battle; against prices; is heating up. If you’re preparing for govt exams, remember this: currency, inflation, and RBI measures are all connected. And they always show up in the economy section. Don’t just memorize; understand the why behind the move.