The Reserve Bank of India likely intervened in the foreign exchange market to shore up the rupee ahead of the local spot market open on Friday, five traders told Reuters.
The central bank’s intervention helped the rupee kick off the local spot market session on a stronger note with the currency opening at 95.55 per U.S. dollar.
Before the central bank’s likely intervention, the rupee was quoting around 95.77-95.78 per dollar but jumped quickly following state-run banks’ dollar sales, most likely on behalf of the Reserve Bank of India.
Traders expect outflows related to maturing contracts in the non-deliverable forward market to pressure the rupee on Friday even as oil prices fell following reports of a ceasefire extension between the U.S. and Iran.