RBI Intervention Keeps Rupee within Narrow Range Amid Elevated Oil Prices

The Indian rupee opened at 95.73 against the US dollar on Tuesday, August 25, due to the Reserve Bank of India's (RBI) intervention in the foreign exchange market.

This move comes as a response to rising crude oil prices and sustained corporate dollar demand. According to Reuters, state-run banks were seen selling dollars, likely on behalf of the RBI, which has helped keep the rupee within a narrow range despite heightened volatility in global markets.

India's external buffers have strengthened with nearly $73 billion in inflows under the special USD-INR swap facility and record gold holdings. The RBI's gold reserves have reached 880.52 tonnes, accounting for around 16.7% of the country's foreign exchange reserves.