RBI Intervenes as Rupee Weakens Amid Rising Oil Prices
The Reserve Bank of India likely intervened in the foreign exchange market as the rupee fell to 95.47 per dollar on Wednesday. State-run banks were seen selling dollars to limit losses triggered by a three-day rally in crude oil prices.
The Reserve Bank of India likely intervened in the foreign exchange market on Wednesday to prevent the rupee from weakening past a key psychological level. The currency fell 0.2% to 95.47 per dollar as a third consecutive daily rise in oil prices pressured South Asian markets. This intervention suggests the central bank is actively managing currency volatility driven by renewed geopolitical hostilities in the Middle East.
### State Banks Defend the Rupee Four traders told Reuters that the central bank likely sold dollars through state-run banks to limit the currency's decline. These institutions were spotted offering dollars near the 95.50 mark as the rupee approached that level.
