RBI sells at least $8 billion to support rupee as inflows surge

  • RBI intervention of an estimated $8 billion-$15 billion helped lift the rupee to a more than two-month high.
  • Policy-driven inflows exceeded $136 billion, while foreign-exchange reserves reached a record $740.8 billion through August 21.
  • Brent crude rose 7.8% last week as U.S.-Iran tensions heightened supply concerns, while U.S. inflation remained a key Fed policy signal.

The Indian rupee rose 0.9% last week to around 94.4 per dollar, reaching a more than two-month high after the Reserve Bank of India sold an estimated $8 billion-$15 billion to support the currency, according to six bankers. Policy-driven foreign-currency inflows exceeding $136 billion and record reserves strengthened the RBI’s capacity to intervene, although analysts said the rebound is unlikely to begin a sustained appreciation cycle. The currency remained exposed to a 7.8% weekly surge in Brent crude amid U.S.-Iran tensions and shifting Federal Reserve rate expectations.

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