India Central Bank Sells $7 Billion to Defend Rupee Near Record Low
Updated
Updated · Bloomberg · Aug 3
India Central Bank Sells $7 Billion to Defend Rupee Near Record Low
3 articles · Updated · Bloomberg · Aug 3
Summary
$7 billion of dollar sales by the Reserve Bank of India last Friday marked one of its biggest direct rupee-defense operations in months, according to people familiar with the matter.
The RBI stepped into both onshore and offshore markets as the rupee approached a record low against the dollar, underscoring pressure on the currency.
That intervention came before the rupee later rebounded, helped by broader dollar-selling by Japan, South Korea and the US Treasury as well as a softer-than-feared Fed backdrop.
The episode highlights how heavily the rupee still depends on official support even after its recent surge, with its broader trend seen as fragile.
Can the rupee extend gains below 95.10, or will the RBI and stronger U.S. data stop the rally before USD/INR reaches 94.00?
Has rare U.S.-Japan intervention truly turned the dollar lower, or will sticky inflation and fresh Middle East risks send USD/JPY and USD/INR rebounding?
Is the dollar’s slide a fundamental shift in Fed expectations, or just a short-lived intervention shock hiding deeper inflation pressure?