RBI Sells Dollars via State Banks to Support Rupee
The Reserve Bank of India is reportedly selling US dollars through state-run banks to curb excessive volatility and support the rupee, according to traders.
India’s central bank has intervened in the foreign exchange market by selling U.S. dollars through state-owned banks, according to traders. The move is aimed at stemming excessive volatility and stabilizing the rupee amid persistent global pressures and strong dollar demand.
The intervention comes as the rupee faces headwinds from global market movements, including a firmer dollar and capital outflows. By selling dollars directly, the RBI seeks to prevent sharp depreciation and maintain orderly market conditions.
No official confirmation has been provided, but market participants reported the activity during Tuesday's trading session. The rupee has been under pressure in recent weeks, prompting periodic central bank action.
Source: First Squawk