Rupee edges up to 95.11 against dollar on likely RBI intervention

Mumbai: The Indian rupee strengthened a little on Tuesday despite high oil prices and foreign fund outflows, as the Reserve Bank of India (RBI) likely sold dollars to cap excess depreciation in the currency. The rupee closed at 95.11 on Tuesday, from its previous close of 95.18. The currency traded in the range of 95.08 and 95.25 on the day, with RBI dollar sales capping a further move south of 95.25, traders said.

“The price action was heavily steered by market anticipation of sizable dollar outflows associated with foreign institutional allocations and dollar demand from oil companies, as Brent prices rose,” said a trader from a private sector bank.

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Brent futures were around $116 per barrel on Tuesday.

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“Active RBI intervention via state-run banks capped momentum near the 95.25 resistance ceiling,” another trader said.