Rupee Rises Amid RBI Action, Hits New High

The Indian rupee strengthened by 26 paise to 95.17 against the US dollar on Monday, reversing initial losses due to suspected RBI intervention and significant dollar inflows from FCNR(B) schemes.

Rising crude oil prices and geopolitical tensions initially put pressure on the local currency, but a new all-time high in India's forex reserves of USD 729.328 billion helped stabilize it.

The Reserve Bank of India might have intervened to support the currency at lower levels after market participants raised the probability of a rate hike by the US Federal Reserve in September, pushing US Treasury yields higher and triggering a broad dollar rally.