MUMBAI: The Reserve Bank of India likely intervened in the foreign exchange market on Wednesday, three traders told Reuters, as elevated oil prices and a looming rate hike by the US Federal Reserve pressured the currency.
The rupee was at 95.8725 per dollar, up 0.1% on the day after hitting its weakest level in more than one month in the previous session.
State-run banks were spotted offering dollars, the traders said, most likely on behalf of the RBI.
The central bank has been intervening in the FX market frequently to support the rupee, which has helped limit the currency’s decline in the face of multiple headwinds.
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