Indian central bank likely intervenes to shield rupee as oil prices climb, traders say
MUMBAI: The Reserve Bank of India (RBI) likely intervened in the foreign exchange market on Tuesday, four traders told Reuters, as rising oil prices and growing wagers on a rate hike in the US this week pressured the South Asian unit.
The rupee declined 0.2 per cent to 95.79, hovering around its weakest levels in a month.
State-run banks were spotted offering dollars, most likely on behalf of the RBI, the traders said. The dollar sales were not "especially heavy" in nature and are likely intended to limit excessive volatility, a trader at a Mumbai-based bank said.
Brent crude oil prices were last up 1.2 per cent at US$106.9 per barrel.
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