RBI Intervention Lifts Indian Rupee Amid Hawkish Fed Remarks

The Indian Rupee rebounded sharply on Friday after suspected intervention from the Reserve Bank of India (RBI), despite a hawkish speech by US Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium.

Powell's remarks at the symposium sparked a strengthening of the US dollar across the board, with the rate hike probabilities for the September meeting increasing to 60% in the market. The Fed is now focused solely on inflation and has reiterated that progress has been slow.

However, despite a jump in oil prices, the INR saw a quick rebound, which may be attributed to RBI intervention. Market participants are expecting dip-buyers to step in soon, but the rupee's bearish structural trend against the US dollar is expected to persist.