RBI's Secret Dollar Sales Keep Rupee Stable Amid Oil Price Hike

India's rupee maintained its stability despite rising oil prices, which typically would put pressure on the currency. According to traders, state-run banks quietly sold dollars on behalf of the Reserve Bank of India (RBI) to keep the rupee steady.

The rupee traded around 95.2650 per US dollar, roughly unchanged from the previous day, after touching a one-month low of 94.9175 earlier in the week. This calm is notable because higher oil prices often hurt the rupee, as India imports most of its crude and a pricier barrel means more dollar demand from refiners.

Traders told Reuters that state-run banks were selling dollars before the local session started, a common way for the RBI to intervene without directly showing up. The daily reference rate, or 'fix', was trading at a 0.70-0.80 paisa premium, suggesting buyers were still willing to pay up for dollars at that set window.