An informed trader said that the Bank of India sold the US dollar in the domestic foreign exchange market to support the rupee. The person concerned requested anonymity because they were not authorized to speak publicly. The dollar rose 0.1% against the rupee to 96.0963. The one-month no-principal delivery forward exchange rate of the US dollar against the rupee rose by 0.2% and is currently flat at 96.37. After the Federal Reserve raised interest rates as scheduled on Wednesday, the Bank of India took the above action. Higher US interest rates will reduce the relative appeal of emerging market bonds such as India. Over the past few weeks, the Bank of India has continued to intervene in the foreign exchange market. The rupee depreciated by more than 6% this year, and its performance is weaker than other Asian currencies.

An informed trader said that the Bank of India sold the US dollar in the domestic foreign exchange market to support the rupee. The person concerned requested anonymity because they were not authorized to speak publicly. The dollar rose 0.1% against the rupee to 96.0963. The one-month no-principal delivery forward exchange rate of the US dollar against the rupee rose by 0.2% and is currently flat at 96.37. After the Federal Reserve raised interest rates as scheduled on Wednesday, the Bank of India took the above action. Higher US interest rates will reduce the relative appeal of emerging market bonds such as India. Over the past few weeks, the Bank of India has continued to intervene in the foreign exchange market. The rupee depreciated by more than 6% this year, and its performance is weaker than other Asian currencies.