RBI back to rupee's rescue to counter oil, Fed headwinds; steps into swaps too
MUMBAI: India’s central bank stepped in again to support the rupee on Monday, after a surge in oil prices and rising expectations of a U.S. interest-rate hike combined to pressure the currency. The rupee was quoting at 95.44 to the dollar at 11:49 a.m. IST, down less than 0.1% from Friday. The currency opened weaker at 95.49 and had briefly fallen to 95.60 on the interbank order-matching system before the regular market session began. The Reserve Bank of India’s intervention helped the currency recover, extending a pattern seen repeatedly in recent sessions. The central bank’s sustained presence has insulated the rupee from adverse external developments and leaving the currency muted in its response to changes in the factors that would otherwise influence it. “The RBI was there right from the start,” a currency trader at a private sector bank said, adding that, like several others in the market, he now sees the 95.70-95.80 zone as a key support area for the rupee. Monday’s muted price action comes despite mounting oil concerns and higher U.S. Treasury yields. India’s RBI gives banks more flexibility in swapping overseas dollar deposits Bent crude rose 3.2% to $90.92 after the lates
MUMBAI: India’s central bank stepped in again to support the rupee on Monday, after a surge in oil prices and rising expectations of a U.S. interest-rate hike combined to pressure the currency. The rupee was quoting at 95.44 to the dollar at 11:49 a.m. IST, down less than 0.1% from Friday. The currency opened weaker at 95.49 and had briefly fallen to 95.60 on the interbank order-matching system before the regular market session began. The Reserve Bank of India’s intervention helped the currency recover, extending a pattern seen repeatedly in recent sessions. The central bank’s sustained presence has insulated the rupee from adverse external developments and leaving the currency muted in its response to changes in the factors that would otherwise influence it. “The RBI was there right from the start,” a currency trader at a private sector bank said, adding that, like several others in the market, he now sees the 95.70-95.80 zone as a key support area for the rupee. Monday’s muted price action comes despite mounting oil concerns and higher U.S. Treasury yields. India’s RBI gives banks more flexibility in swapping overseas dollar deposits Bent crude rose 3.2% to $90.92 after the lates
