India's Reserve Bank Sells Dollars in FX Market to Support the Rupee

According to Sina Finance, informed traders said India's Reserve Bank sold dollars in the onshore and offshore foreign exchange markets to support the rupee. The dollar was steady at 95.4063 rupees, while the one-month non-deliverable forward contract fell 0.2% to 95.64. The move came after Brent crude prices rose following U.S. strikes on Iran's rocket launchers. India is a major oil importer, and higher oil prices widen its trade deficit and push up inflation. The Reserve Bank has intervened in the foreign exchange market over the past several weeks, and recent dollar deposit plans have brought in funds, helping foreign exchange reserves at the central bank reach a record high.