According to multiple unnamed trading sources with knowledge of the matter, the Reserve Bank of India has been selling dollars in the onshore foreign exchange market to bolster the rupee's value. The individuals spoke anonymously as they are not authorized to comment publicly.
The US dollar to Indian rupee exchange rate climbed as much as 0.5%, reaching a high near 95.78, marking its highest level since June 4th.
Traders indicated that India's central bank was selling dollars around the 95.75 level.
The rupee has weakened significantly, influenced by renewed US military action against Iran and a subsequent rise in international oil prices.
Driven by a combination of Middle East tensions pushing oil prices higher and recent broad strength in the US dollar, the rupee has depreciated by over 6% so far this year.
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