RBI Likely Intervenes to Support Rupee as It Battles Pressures Near 95.56 Level, Traders Say
The Reserve Bank of India likely intervened in the forex market on Wednesday through state-run banks to stabilize the rupee as it faced selling pressure near 95.56 per dollar.
- Republic Business
- 1 min read
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The Indian central bank likely stepped in to the foreign exchange market on Wednesday to support the rupee, three traders told Reuters, as maturing contracts in the non-deliverable forwards market exerted pressure on the currency.
The rupee was at 95.27, up modestly on the day after hitting an intra-day low of 95.5625 in early trading.
The Reserve Bank of India also likely paired its spot dollar sales with dollar-rupee buy/sell swaps for maturities over 1 year, the traders said.
Both the spot dollar sales and swaps were being carried out by state-run lenders, likely on behalf of the RBI, one of the traders added.