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The Reserve Bank of India likely
intervened in the foreign exchange market on Monday, five
traders told Reuters, to protect the rupee against pressure
arising from uncertainty over the US-Iran war and corporate
hedging flows.
The rupee was little changed on the day at 95.6425
per dollar, clinging to a narrow range in early trading.
State-run banks were spotted offering dollars, most likely
on behalf of the RBI, traders said.
Traders reckon that robust inflows under policy measures to
strengthen India’s balance of payments have bolstered the RBI’s
ability to support the rupee via interventions.