India’s central bank is intensifying efforts to support the rupee, emboldened by a jump in its foreign-exchange reserves to contest the pressure from higher oil prices.
The Reserve Bank of India has decided to shift to a more constant pattern of intervention to support the currency over the past month, thanks to the level of foreign deposit inflows, whereas previously it would largely step in to curb bigger swings, according to a person familiar with the matter. The change in tack comes from the comfort provided by $73 billion of fresh money under RBI’s measures to attract dollars since June, they said, asking not to be identified discussing policy matters.
