Five traders said the Reserve Bank of India may enter the FX market on Monday to alleviate uncertainty from a potential US–Iran conflict and corporate hedging flows pressuring the rupee. Market observers noted state-owned banks selling US dollars, likely acting on behalf of the RBI. Traders added that recent government measures to shore up the external position have driven strong inflows, bolstering the RBI's capacity to support the rupee via intervention.

2026-08-24

Five traders said the Reserve Bank of India may enter the FX market on Monday to alleviate uncertainty from a potential US–Iran conflict and corporate hedging flows pressuring the rupee. Market observers noted state-owned banks selling US dollars, likely acting on behalf of the RBI. Traders added that recent government measures to shore up the external position have driven strong inflows, bolstering the RBI's capacity to support the rupee via intervention.