Indian central bank likely shielding rupee as US-Iran impasse lifts oil prices, traders say

MUMBAI: The Reserve Bank of India likely intervened in the foreign exchange market on Monday, four traders told Reuters, as stalled US-Iran diplomatic talks pushed oil prices higher, with month-end corporate flows adding to the pressure.

The rupee declined 0.1% to 95.89 per dollar, with the central bank’s presence helping it hold above the 96 mark, similar to the price action observed over the last two weeks.

“Nearly every day we have seen some amount of interventions, which signals that the RBI wants to keep a firm floor under the rupee for now,” a senior trader at a foreign bank said.

Asian currencies were down between 0.1% to 0.6% on Monday.