Indian central bank likely shielding rupee as US-Iran impasse lifts oil prices, traders say

Business Recorder reported, citing four traders who spoke to Reuters, that the Reserve Bank of India probably stepped into the currency market on Monday. Diplomacy between the United States and Iran has stalled, lifting oil prices, while corporate payments at month end added strain to the currency. The rupee lost 0.1% to 95.89 per dollar, and the central bank's presence helped limit its slide around the 96 level.

A senior trader at a foreign bank noted that intervention has occurred on almost every recent day, suggesting the RBI is defending a firm lower limit for the currency at present. Other currencies across Asia lost ground too, with declines ranging from 0.1% to 0.6% on Monday. Price action has looked similar over the last two weeks, the traders said.