Four traders said the Reserve Bank of India may have intervened in the FX market on Monday to support the rupee amid persistent uncertainty from the Middle East conflict. Traders said the RBI has been intervening frequently in recent sessions, apparently to consolidate the rupee’s rebound since late July from near-record lows. They observed state-owned banks selling dollars, likely on behalf of the RBI.

Bank of Japan July meeting minutes show one member said the bank must normalize monetary policy by raising the policy rate above the lower bound of the estimated neutral-rate range.

Economy Minister Minoru Kiuchi said in a Monday interview Japan’s spending plan will provide long-term support for the yen, rejecting market concerns about the country’s fiscal position. He said fiscal policy “is not as expansionary as you think,” stressing sustainability and calling the approach responsible and proactive. Kiuchi said higher investment and greater demand for yen assets should lift yen demand and that the BOJ has acted appropriately. Market participants remain skeptical about the size of the large spending package and potential government influence on the BOJ. The government’s end-June growth roadmap covers 17 sectors but has not disclosed how much investment will be public versus private.