RBI likely intervenes to limit rupee's fall, traders say
According to traders, the Reserve Bank of India (RBI) intervened in the FX market to limit the rupee's decline against the dollar. The currency has been testing new lows.
Economic Times · ReutersAccording to a report by Economic Times, traders in FX markets said the RBI intervened to slow the rupee's decline against the dollar. The intervention was reportedly carried out via dollar sales through state-owned banks. The rupee has been under pressure due to the Iran war and energy import costs.
Analysts said the RBI prefers to use foreign exchange reserves sparingly and aims to prevent excessive volatility. The Indian currency has lost significant ground against the dollar since the start of 2025. India, as one of the world's largest oil importers, is directly affected by swings in Brent.
The central bank made no formal comment on the interventions. Markets will watch the RBI's policy rate decision at its next meeting and reserve reports closely. Economists say more durable stability will require structural measures to address the current account deficit.
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