emirates7 - The Reserve Bank of India (RBI) was likely selling dollars on Tuesday to support the rupee, which had come under pressure due to weak global risk appetite and increased demand for dollars tied to the maturity of positions in the non-deliverable forwards (NDF) market, according to five traders speaking to Reuters.
State-run banks were seen offering dollars around the 87.30 levels, likely on behalf of the RBI, traders noted.
One trader at a bank remarked that it appeared the RBI would remain active until the mid-day fixing window, after which the USD/INR exchange rate could rise.
The maturity of NDF positions generally increases demand for dollars at the daily reference rate, putting pressure on the rupee.
The dollar index has dropped by over 3% in March so far.
MUFG Bank mentioned in a note that tariff delays and exemptions could continue to weigh on the US dollar, citing President Donald Trump’s inconsistent tariff policies.
In a recent interview, Trump refrained from predicting a US recession despite stock market concerns over his tariff actions against Mexico, Canada, and China.
US tariffs of 25% on steel and aluminum imports will take effect on Wednesday, and investors are waiting for announcements regarding reciprocal tariffs in early April.
State-run banks were seen offering dollars around the 87.30 levels, likely on behalf of the RBI, traders noted.
One trader at a bank remarked that it appeared the RBI would remain active until the mid-day fixing window, after which the USD/INR exchange rate could rise.
The maturity of NDF positions generally increases demand for dollars at the daily reference rate, putting pressure on the rupee.
The dollar index has dropped by over 3% in March so far.
MUFG Bank mentioned in a note that tariff delays and exemptions could continue to weigh on the US dollar, citing President Donald Trump’s inconsistent tariff policies.
In a recent interview, Trump refrained from predicting a US recession despite stock market concerns over his tariff actions against Mexico, Canada, and China.
US tariffs of 25% on steel and aluminum imports will take effect on Wednesday, and investors are waiting for announcements regarding reciprocal tariffs in early April.