RBI Defends Rupee as Crude Oil Prices Rise Amid West Asia Crisis

The Reserve Bank of India (RBI) has been defending the rupee at 95.45 against the dollar, and traders are waiting to see how aggressively the central bank will intervene this week.

Last week, the RBI sold dollars every day to keep the currency within a narrow band between 95.17 and 95.45 on all five trading sessions.

Market participants expect the pace of foreign inflows to pick up over the remaining two weeks, which could provide some support to the rupee.

Anil Bhansali, head of treasury at Finrex Treasury Advisors, expects the RBI to come in and intervene, saying 'I expect the RBI to come in. Last week, it did not let the rupee cross 95.45, so we will all be in a wait-and-watch mode Monday morning.'

Brent crude futures have climbed nearly 6% in a week amid a fragile truce in West Asia, and oil prices are expected to intensify dollar demand from oil companies and importers.