Indian central bank likely intervenes to support rupee as oil prices weigh, traders say

Business Recorder reported, citing Reuters, that the Reserve Bank of India likely stepped into the currency market on Tuesday, according to two dealers and a currency broker. The rupee slid beyond the 96 mark against the dollar, reaching a two-month low as worries over rising oil prices deepened. State-owned lenders were observed selling dollars, most probably acting for the central bank, the traders said.

The currency touched a low of 96.1575 per dollar before recovering some ground, and its last quote stood at 96.1125. The account rests on remarks from traders and a broker rather than any official statement from the central bank. Currency swings tied to oil prices matter to investors because exchange rates feed into the performance of listed companies.