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

According to Business Recorder, citing Reuters, the Reserve Bank of India probably entered the foreign exchange market on Tuesday to prop up the rupee as oil prices climbed again. The rupee was quoted at 94.68 per dollar, a fall of 0.2 per cent on the day. State-run lenders were reportedly offering dollars near 94.70, most likely acting for the central bank.

Sources said the central bank has intervened repeatedly over the past fortnight to support the currency. Bankers also put the amount sold last week at no less than $8 billion, which they said was aimed at steadying the rupee.

Brent crude futures gained 0.6 per cent to $97.5 a barrel as the risk of a longer Middle East conflict increased. The rise followed Iran's warning that it would hit back at any fresh American strikes on its assets, which added to concerns about supply disruption.