<h1>Central bank intervenes in forex to support currency, curbing speculation as rupee strengthens and inflows return</h1> A central bank intervened in the foreign exchange market to support the domestic currency, which appreciated by 40 paise to 87.68 against the US dollar in early trade, curbing speculative flows and preventing further depreciation. The intervention, alongside a softer dollar index, improved market sentiment and coincided with stronger domestic equities, lower crude prices and renewed foreign inflows. Authorities indicated an intent to limit speculative trading ranges. Market moves included a prior one-day 73-paise rebound, higher equity indices, net foreign institutional purchases, and widening trade deficit due to faster import growth relative to exports.