Trader: India's central bank sells U.S. dollars to support rupee exchange rate
A number of informed trading sources, who did not want to be named, revealed that the Reserve Bank of India (India's central bank) was selling U.S. dollars in the domestic foreign exchange market to support the rupee exchange rate. The relevant personnel did not have official permission to speak to the outside world, so they chose to remain anonymous. The U.S. dollar exchange rate rose as much as 0.5% against the Indian rupee, hitting around 95.78, a new high since June 4. Traders said the Reserve Bank of India was selling dollars around the 95.75 level. Affected by the United States' renewed attack on Iran and rising international oil prices, the rupee depreciated sharply. Affected by the dual factors of rising oil prices due to the situation in the Middle East and the recent strengthening of the US dollar, the rupee has fallen by more than 6% this year.