Indian central bank likely intervenes to support Indian rupee near 96/USD mark, traders say

Business Recorder, citing four traders who spoke to Reuters, reported that the Reserve Bank of India probably stepped into the currency market on Wednesday. Their read is that the central bank wants to keep propping up the rupee while global conditions remain unsettled. Quoted levels showed the currency at 95.97 per dollar, barely moved over the session.

State-run lenders were seen offering dollars, which the traders thought was most likely being done for the RBI. Dollar offers were bunched around the 96 per dollar level, according to one of the participants. The central bank has been steering the rupee through regular interventions, drawing on its larger foreign exchange reserves to stop outside pressures from creating excessive strain on the currency.