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.