Reserve Bank of India sells USD near 96.80 INR to curb depreciation amid rising oil prices and Fed rate hike bets.
The Indian Rupee strengthened to near 96.50 against the USD after the Reserve Bank of India intervened by selling dollars around 96.80 INR. State-run banks also offered USD, likely on the RBI’s behalf, following similar actions in spot and non-deliverable forwards markets on Thursday.
The RBI’s support comes as oil prices surge due to US-Iran tensions and supply disruptions in the Red Sea. Rising Fed rate hike expectations further pressure the Rupee, with analysts expecting only temporary relief from the central bank’s measures.
Markets remain cautious as prolonged oil supply tightness and hawkish Fed signals could reverse the Rupee’s gains.