RBI likely intervenes, anchoring rupee in face of global ructions, traders say
The rupee was little changed on the day at 95.6425 per dollar, clinging to a narrow range in early trading
The Reserve Bank of India (RBI) may have stepped in to stabilize the Indian rupee in the foreign exchange market on Monday, according to five traders. This intervention came as a response to uncertainty stemming from the US-Iran war and corporate hedging activities, traders told Reuters. Despite these challenges, the rupee remained relatively stable, fluctuating only slightly to 95.6425 per dollar within a narrow trading range.
State-run banks have been observed offering dollars, most likely acting on behalf of the RBI, traders suggested. Strong inflows resulting from the RBI's policies aimed at bolstering India's balance of payments appear to have enhanced the central bank's capacity to support the rupee through such interventions.
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