RBI Likely Intervenes to Support Rupee via Spot and Swaps
The Reserve Bank of India likely intervened in the foreign exchange market on Wednesday to stabilize the rupee amid pressure from maturing forward contracts. Traders report the central bank utilized state-run lenders to conduct spot dollar sales and buy/sell swaps.
The Reserve Bank of India likely intervened in the foreign exchange market on June 10 to support the rupee through spot dollar sales and swaps. The currency rose 0.3% to 95.27 after hitting an intra-day low of 95.5625 during morning trading. This intervention signals the RBI's commitment to managing the currency as offshore contract maturities pressure the local unit.
