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

The Reserve Bank of India likely intervened because the rupee was nearing its all-time low of 96.96 per dollar, as it hovered around 96.70 per dollar amid surging Brent crude oil prices past $100 per barrel due to intensifying Middle East conflict.

How did market participants observe the RBI's probable intervention?

Traders observed state-run banks offering dollars on Friday, most likely on the RBI's behalf, indicating central bank intervention in the foreign exchange market to support the rupee.

Indian Central Bank Likely Intervenes to Avert Rupee Record Low as Oil Surges

Jul 23, 2026

The Reserve Bank of India likely intervened in the forex market as Brent crude oil prices rose above $100 per barrel amid Middle East tensions. State-run banks sold dollars to stabilize the rupee near its all-time low.

reuters

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