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

The Reserve Bank of India likely intervened to shield the rupee against pressure stemming from elevated oil prices and sustained corporate dollar demand, as reported by four traders who spoke to Reuters.

What was the rupee's trading behavior on Tuesday, and how did intervention affect it?

The rupee was little changed at 95.7350 per dollar and remained within an under 1-paisa trading range, with sustained interventions—executed via state-run banks offering dollars—helping to suppress volatility and anchor the currency despite global market turbulence.

Indian Central Bank Likely Intervenes to Keep Lid on Rupee Weakness, Traders Say

Aug 24, 2026

The Reserve Bank of India likely intervened in the foreign exchange market to stabilize the rupee against pressure from elevated oil prices and sustained corporate dollar demand.

reuters

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