Traders report the Reserve Bank of India likely intervened for an eighth straight session as oil prices pressure the rupee.
The Indian Rupee (INR) rose against the US Dollar (USD) on Tuesday, trading near 95.67 after hitting a three-week high of 95.85 earlier in the session. The gain follows reports of potential Reserve Bank of India (RBI) intervention in the foreign exchange market, with state-run banks spotted selling dollars on its behalf.
Oil prices climbed 1.1% to Rs. 8,150, a two-week high, as the US-Iran ceasefire expired, raising concerns over energy supply disruptions. Currencies of oil-importing economies like India often weaken in such environments. The RBI’s suspected intervention marks its eighth consecutive session amid sustained pressure on the INR.
Markets now await the US Federal Open Market Committee (FOMC) minutes for further direction.