India's Central Bank May Intervene to Halt Rupee's Slide Amid High Oil Prices and Rising US Rates
Digital FinanceMacro
The Reserve Bank of India appears to have intervened in the foreign exchange market on the 11th to stem the rupee's decline. According to multiple market participants, the move comes as rising crude oil prices and US Treasury yields put pressure on the Indian rupee. The rupee at one point fell 0.4 percent to 95.7925 per dollar, but later pared its losses and was recently trading at 95.71. The central bank appears to have conducted dollar-selling, rupee-buying swaps for a third consecutive trading day on the 11th, part of measures to absorb excess rupee liquidity from the banking system, and the scale was modest.
