Bloomberg reported the intervention as higher oil prices pressured India’s currency, though the RBI has not officially commented on the matter.
The Reserve Bank of India sold U.S. dollars in the market to support the rupee as a recent surge in oil prices added pressure to India’s currency, Bloomberg reported. The RBI (India’s central bank) has not officially commented on the reported intervention. Such dollar sales are a standard central-bank tool to smooth currency volatility and help limit imported inflation when energy costs rise.