RBI intervention, dollar flows push Indian rupee to two-month peak

MUMBAI: The Indian rupee surged to a two-month high against the U.S. dollar on Tuesday, powered by aggressive central bank intervention and supported by flow-related dollar offers from foreign banks. The Indian rupee settled above the 95 to the dollar mark for the first time in two months, defying a selloff in Asian currencies triggered by a global bond rout that deepened with Japan’s benchmark bond yield hitting the key 3% barrier for the first time in 30 years. “The rupee strengthened significantly in today’s session, reflecting continued RBI dollar-selling intervention and flow-related dollar supply, while yesterday’s strong growth data as also improved sentiment toward the currency,” said Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors. The currency ended at 94.9500, up 0.2% from the previous close, notching its third consecutive daily rise. Inflows toward a state-backed infrastructure fund also aided, traders said. The Reserve Bank of India, which has been a heavy presence in the forex market in recent sessions, sold dollars again through state-run banks, propelling the rupee higher even as Asian peers fell between 0.2% and 5.2%. Treasuries sold off, with the