Indian central bank likely shielding rupee as US-Iran impasses lifts oil prices, traders say
The rupee has already seen a decline of 0.1 per cent, to 95.89 per dollar, with the central bank's presence helping it hold above the 96 mark
On Monday, the Reserve Bank of India may have stepped in to support the rupee in the foreign exchange market, according to four traders quoted by Reuters. The move comes as stalled US-Iran diplomatic talks have driven oil prices upward, with corporate flows at month-end adding to the pressure on the currency. The rupee slipped by 0.1 percent to 95.89 per dollar, with the central bank's presence helping it stay above the 96 mark, similar to the price action seen over the past two weeks.
A senior trader at a foreign bank noted that the RBI has been intervening nearly every day, indicating its desire to maintain a solid floor for the rupee for now. Asian currencies experienced a decline ranging from 0.1 percent to 0.6 percent on Monday.
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