RBI intervenes to support rupee as oil prices, dollar demand rise: Report
The Reserve Bank of India has reportedly intervened in the foreign exchange market to stabilize the rupee against the dollar. The currency has faced pressure from rising global oil prices and increased corporate demand for dollars.
Why it matters
Central bank intervention is critical for maintaining currency stability and managing inflation in emerging markets like India during periods of geopolitical uncertainty.
The Reserve Bank of India likely intervened in the foreign exchange market on Tuesday to protect the rupee from pressure caused by elevated oil prices and sustained corporate demand for dollars, four traders told Reuters.The rupee was little changed at 95.7350 per dollar, remaining within a trading range of less than one paisa as the central bank's intervention kept volatility subdued.State-run banks were seen offering dollars, which traders said was most likely on behalf of the RBI.The central bank's sustained intervention over recent trading sessions has kept the rupee anchored in a tight range despite volatility in global markets.Rupee remains near 95.75 as RBI steps inThe rupee opened at 95.74 per dollar, down 4 paise from Monday's close.
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