India’s central bank stepped in forcefully to support the Rupee on Wednesday, selling US Dollars in the foreign exchange market, bankers said, in a move reminiscent of its earlier robust attempts to halt the currency’s steady slide.
The Reserve Bank of India (RBI) took decisive action to ease the downward pressure on the Rupee on Monday, which had intensified after the currency fell past a key level on Friday, bringing the psychological 90-mark into focus.
Traders reported that the Indian Rupee ended Tuesday mostly unchanged, as persistent pressure on the currency was eased by expected central bank actions in both the local spot and non-deliverable forward markets.
The Indian Rupee gained slightly on Wednesday, supported by the central bank's decision to maintain its key interest rate, although anticipated increases in tariffs on exports to the United States are expected to weigh on the currency.
