Indian central bank likely intervenes to support Indian rupee near 96/USD mark, traders say
MUMBAI: The Reserve Bank of India likely intervened in the foreign exchange market on Wednesday, four traders told Reuters, signalling that the central bank intends to keep up its support for the currency amid a volatile global backdrop. The Indian rupee was last quoted at 95.97 per dollar, little changed on the day. State-run banks were spotted offering dollars, most likely on behalf of the RBI,…
The Indian rupee was little changed at 95.97 per dollar on Wednesday. Traders reported that state-run banks were offering dollars, likely on behalf of the Reserve Bank of India, with offers concentrated around the 96 per dollar mark. According to traders, this suggests that the central bank intervened in the foreign exchange market to support the currency.
The RBI has been managing the rupee through frequent interventions, using its increased foreign exchange reserves to mitigate external pressures. This move comes amid a volatile global backdrop, with rising inflation and interest rate hikes by central banks such as the US Fed and Australian central bankers.
The Indian stock market also experienced a bearish trend, with the Nifty 50 crashing 6.3 per cent in the previous series, marking its worst September performance since 2001. Analysts expect the RBI to hike interest rates in the upcoming meeting, citing rising inflation due to surging crude oil prices.
Brief written by urgent.news from Business Recorder, Hindu BusinessLine — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Negative opening likely for Indian stock markets thehindubusinessline.com
- Indian shares likely to rise as oil comes off; BSE joins Nifty brecorder.com
