RBI steps into forex market as oil prices surge, traders say
Traders say the Reserve Bank of India intervened in the foreign-exchange market on Tuesday, selling dollars to curb rupee volatility as Brent crude rose.
According to four market participants, the RBI likely acted through state-run banks that offered dollars, aiming to limit sharp moves in the rupee. The currency slipped about 0.2% to around 95.79 per dollar, near its weakest level in a month. The move coincided with Brent crude climbing 1.2% to roughly $106.9 a barrel and heightened expectations of a U.S. rate hike.
Why it matters
The RBI's forex move signals official effort to stabilize the rupee amid rising oil costs and global rate-policy uncertainty.
In this story
RBIrupeeforeign exchange interventionoil pricesBrent crudedollar salesmarket volatilityU.S. rate hike
