Why did the Reserve Bank of India intervene in the foreign exchange market on Tuesday?

The Reserve Bank of India likely intervened in the foreign exchange market on Tuesday because a renewed rise in oil prices—Brent crude futures rose 0.6% to $97.5 per barrel amid escalating Middle East tensions—was putting pressure on the Indian rupee, which had weakened to 94.68 per dollar, down 0.2% on the day.

How did the RBI carry out its intervention, and what evidence supports this?

The RBI carried out its intervention indirectly through state-run banks, which were seen offering dollars around the 94.70 level—very close to the rupee's trading price of 94.68 per dollar—most likely on behalf of the central bank, according to one banker; this aligns with the RBI's persistent intervention over the prior two weeks to support the rupee.

Indian Central Bank Extends Intervention to Support Rupee Amid Rising Oil Prices

Sep 7, 2026

The Reserve Bank of India intervened in the foreign exchange market as renewed oil price rises pressured the rupee, with Brent crude hitting $97.5 per barrel due to Middle East conflict risks.

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