India’s central bank reportedly sells U.S. dollars to support rupee

Traders said the Reserve Bank of India was intervening through state-run banks, a common foreign-exchange market operation used to steady the local currency.

Summary

India’s central bank was reportedly selling U.S. dollars through state-run banks to support the rupee, traders said. The reported intervention points to foreign-exchange market action aimed at cushioning pressure on the local currency by supplying dollars into the market via public-sector lenders.

Terms & Concepts
  • foreign-exchange market: Market where currencies are bought and sold
  • intervention: Central bank action to influence currency trading