Indian central bank likely intervenes to support Indian rupee near 96/USD mark, traders say
- The Indian rupee was last quoted at 95.97 per dollar, little changed on the day
The Reserve Bank of India likely intervened in the forex market to support the rupee, using state-run banks to offer dollars and prevent excessive currency pressure amid global volatility.
- RBI's forex market intervention strategy
- Support for the Indian rupee
- Managing currency amid global volatility
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 traders said.
Offers were concentrated around the 96 per dollar mark, one of them added.
The RBI has been managing the rupee via frequent interventions by using its increased FX reserves firepower to prevent external pressures from translating into excess pressure on the currency.