MUMBAI: The Indian central bank likely intervened in the foreign exchange market on Monday, five traders told Reuters, to protect the rupee against pressure arising from uncertainty over the U.S.-Iran war and corporate hedging flows.
The rupee was little changed on the day at 95.6425 per dollar, clinging to a narrow range in early trading.
State-run banks were spotted offering dollars, most likely on behalf of the Reserve Bank of India, traders said.
Traders reckon that robust inflows under policy measures to strengthen India’s balance of payments have bolstered the RBI’s ability to support the rupee via interventions.
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