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Rupee firms as RBI sells dollars near 96.80 USD/INR

USD/INR fell to around 96.5 after Reuters said the RBI is likely selling dollars near 96.80, with state-run banks spotted offering them.

Reported · Written up by our desk · Major Pairs

The Indian rupee strengthened versus the US dollar after the Reserve Bank of India intervened again to support the currency, according to FXStreet and a Reuters report.

FXStreet said USD/INR dropped to around 96.50, with Reuters reporting the RBI is likely selling US dollars near 96.80 INR levels. The report also indicated state-run banks were spotted offering US dollars, most likely on the RBI's behalf.

The RBI previously intervened in spot and non-deliverable forwards markets on Thursday to cushion the currency, but FXStreet said that support may be short-lived as oil prices rise and expectations for Federal Reserve rate hikes return to the forefront.

Oil prices have climbed amid renewed US-Iran tensions, after Yemen's Iran-aligned Houthis closed the Bab el-Mandeb Strait, tightening global energy supply. FXStreet cited CME FedWatch data showing odds of a Fed rate hike next week at 35.8%, up from 11.8% last week, alongside US Treasury yields around 4.7% and a firmer US dollar index near a three-week high around 101.5.

Latest closeDollar index 102.12 ▼0.1%

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