The Reserve Bank of India has moved to more sustained FX intervention over the past month to support the rupee, sources said, after measures launched in June to attract dollar funds brought roughly $73bn of inflows. In one action, when the rupee neared record lows the central bank used about $7bn in domestic and offshore markets in a single day. Reserves are now above $700bn, giving the RBI more room to offset oil-price pressure, but investors remain unconvinced the rupee is undervalued, leaving

The Reserve Bank of India has moved to more sustained FX intervention over the past month to support the rupee, sources said, after measures launched in June to attract dollar funds brought roughly $73bn of inflows. In one action, when the rupee neared record lows the central bank used about $7bn in domestic and offshore markets in a single day. Reserves are now above $700bn, giving the RBI more room to offset oil-price pressure, but investors remain unconvinced the rupee is undervalued, leaving doubt whether larger interventions will be sufficient. BNP Paribas SA strategist Chandresh Jain said the RBI’s primary aim is to curb volatility and the speed of two-way moves rather than to fundamentally alter the exchange rate trend.