Indian central bank extends intervention streak to support rupee, traders say

New Delhi, Sept 8 — The Reserve Bank of India likely intervened in the foreign exchange market on Tuesday to support the rupee, according to two bankers and a trader at an FX brokerage who spoke to Reuters. The move comes as a renewed rise in crude oil prices put depreciation pressure on the rupee, which has traded in a volatile range amid shifting global cues. The traders described the intervention as part of an extended RBI intervention streak in the spot market meant to curb sharp losses in the currency. They stressed that the central bank’s actions were not confirmed by official comments, but were inferred from the day’s price action and the frequency of its prior steps in recent weeks. Oil price dynamics have been a key driver of volatility for the rupee, with higher oil costs weighing on import bills and sentiment. The Reuters sources did not disclose the size of the operation or the counterparties involved. Analysts note that while such interventions can provide temporary relief, sustained rupee stability will depend on broader factors, including global energy prices, risk appetite, and India’s external fundamentals. The report underscores the RBI’s ongoing involvement as it uses market tools to temper volatility while the government and central bank balance growth with price stability.