An informed trader revealed that the Reserve Bank of India sells dollars in the onshore and offshore foreign exchange markets to support the rupee exchange rate. The person concerned was not authorized to speak publicly and therefore requested anonymity. The US dollar held steady against the Indian rupee at 95.4063. The USD/INR one-month no-principal forward contract fell 0.2% to 95.64. The background of this operation is that the price of Brent crude oil rose after the US attacked the Iranian rocket launcher. India is a major oil importer, and high oil prices will widen the country's trade deficit and drive up inflation. The Reserve Bank of India has continued to interfere in the foreign exchange market over the past few weeks. The recent US dollar deposit plan brought in capital inflows, driving the central bank's foreign exchange reserves to a record high.

An informed trader revealed that the Reserve Bank of India sells dollars in the onshore and offshore foreign exchange markets to support the rupee exchange rate. The person concerned was not authorized to speak publicly and therefore requested anonymity. The US dollar held steady against the Indian rupee at 95.4063. The USD/INR one-month no-principal forward contract fell 0.2% to 95.64. The background of this operation is that the price of Brent crude oil rose after the US attacked the Iranian rocket launcher. India is a major oil importer, and high oil prices will widen the country's trade deficit and drive up inflation. The Reserve Bank of India has continued to interfere in the foreign exchange market over the past few weeks. The recent US dollar deposit plan brought in capital inflows, driving the central bank's foreign exchange reserves to a record high.