RBI Intervenes Via State-Run Banks to Curb Rupee’s Rise: Traders

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New Delhi: The Reserve Bank of India has intervened aggressively to curb the rupee’s strength as it struck three-month highs, two traders said on Thursday, estimating that the central bank had bought around $1 billion since Wednesday.

They said the RBI was spotted buying the greenback via state-run banks at around 66.2150 rupees per dollar on Thursday, a level last seen on Jan. 1.

At 1:25 p.m., the rupee stood at 66.2300-2350 to the dollar, compared to 66.37/66.38 per dollar on Wednesday.

The Indian currency has gained as a result of broad inflows into emerging markets after the Federal Reserve signalled it would be more cautious raising interest rates than market participants had earlier thought.