Indian Traders Say RBI Keeps Selling Dollars to Support Rupee

According to Sina Finance, informed traders said the Reserve Bank of India has been selling dollars in the onshore and offshore foreign-exchange markets to support the rupee. The dollar rose 0.1% against the rupee to 96.0963, while the one-month non-deliverable forward rate briefly gained 0.2% before holding at 96.37. The traders said the move came after the Federal Reserve raised interest rates as expected on Wednesday. They also said higher U.S. rates reduce the relative appeal of bonds in India and other emerging markets. Over the past few weeks, the Reserve Bank of India has continued intervening in the foreign-exchange market, and the rupee has fallen more than 6% this year, underperforming other Asian currencies.