Rupee steadies near 96 as RBI intervention limits pressure
The Indian Rupee held near 96 per Dollar on September 16 as likely RBI intervention helped offset pressure from high oil prices and rising US yields.
The Indian Rupee traded near 96 per US Dollar on Wednesday as intervention by the Reserve Bank of India helped limit pressure from elevated oil prices and higher US Treasury yields.
Reuters reported that the Rupee was around 95.93 per Dollar, while state-run banks were seen offering Dollars, likely on behalf of the RBI. The central bank has also used dollar-rupee swaps to manage liquidity.
Brent crude remained close to $108 a barrel, adding pressure because India is a major oil importer. At the same time, markets were pricing a high probability of a Federal Reserve rate hike.
Forex traders are watching RBI activity, oil prices and the Fed's updated projections for further direction in USD/INR.
Key Takeaways
- Rupee traded near 95.93 per Dollar.
- Likely RBI intervention helped limit losses.
- Brent crude remained near $108 a barrel.
- Fed expectations remain important for USD/INR.
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