Rupee ends flat as RBI intervention blunts oil price strain
Rupee held near flat despite oil price strain as RBI intervention absorbed dollar demand. State-run banks sold dollars on the central bank's behalf, keeping the currency inside a tight band.
The rupee ended nearly flat against the dollar on Tuesday, with the central bank's intervention offsetting pressure from higher oil prices.
Crude oil's rally boosted dollar demand from importers, pushing the rupee toward fresh lows. State-run banks were spotted selling dollars on behalf of the Reserve Bank of India, traders said. That kept the currency within a tight range through the session.
The RBI's presence in the spot market absorbed the import-related buying without a sharp move in the exchange rate. The rupee closed at 83.12 per dollar, little changed from Monday's close.
Oil prices extended gains after OPEC+ maintained its output cuts, raising India's import bill. The RBI's willingness to supply dollars at the 83.10-83.20 zone has capped the rupee's downside in recent weeks.
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