RBI Spends $12 Billion to Stabilise Rupee as War Shakes Markets: Reuters
India’s central bank has stepped in aggressively to support the Indian Rupee amid market turbulence triggered by the escalating Middle East conflict. According to Reuters reports, the Reserve Bank of India has deployed an estimated $12 billion this week to curb the rupee’s sharp fall against the US Dollar.
Bankers quoted by Reuters estimated the intervention ranged between $9 billion and $15 billion, highlighting the scale of pressure on the currency as geopolitical tensions pushed global oil prices higher.
The rupee briefly strengthened on Thursday after the RBI reportedly sold dollars before the domestic market opened. The currency surged from around ₹92.10 to ₹91.10 per dollar within minutes in the interbank market.
However, some of the gains later faded, with the rupee trading near ₹91.68 per dollar by Friday afternoon.
The conflict has pushed oil prices up by nearly 16 percent this week, increasing India’s import costs and putting additional pressure on the currency. Foreign investors have also pulled about $2 billion from Indian equities, adding to the volatility.
Despite the turmoil, India’s foreign exchange reserves remain strong at over $723 billion, giving policymakers room to stabilise the market.
Our Final Thoughts
The RBI’s intervention shows how global conflicts can quickly impact financial markets. While India’s strong reserves offer protection, continued geopolitical tensions could keep currency markets volatile in the near term.
