Traders report that the Reserve Bank of India likely stepped into the foreign exchange market on Friday. The move is seen as a response to elevated oil prices and low risk appetite, driven by the uncertainty stemming from the ongoing Middle East conflict.
As a result of this intervention, the rupee remained stable, trading at 95.40 against the US dollar. The currency successfully defended the crucial psychological support level of 95.50, a pattern seen throughout most of the week. The central bank's actions have effectively curbed the rupee's depreciation.
For the week so far, the rupee has traded within a narrow band of 95.17 to 95.4450 against the dollar.
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