India's rupee trades near flat on central bank intervention countering dollar demand
Indian rupee sheds modest early gains to trade nearly flat with central bank intervention countering a decline stemming from corporate dollar demand and a rise in oil prices. The rupee was at 95.8050 per dollar, after touching a peak of 95.66 in early trading. The Reserve Bank of India has contained losses with traders pointing to dollar sales by state-run banks and dollar-rupee sell/buy swaps to drain liquidity.
(Updates to afternoon trade) By Jaspreet Kalra MUMBAI, Sept 22 (Reuters) — The Indian rupee shed modest early gains on Tuesday to trade nearly flat with central bank intervention countering a decline stemming from corporate dollar demand and a rise in oil prices. m. 66 in early trading. Brent oil prices gained for the first time in five sessions as investors awaited developments on potential US-Iran talks at the United Nations General Assembly this week.
Tehran and Washington exchanged threats on Sunday, though US President Donald Trump said he would be open to meeting Iran's president, who is expected to be in New York this week for the UN meeting. Corporate dollar hedging has remained elevated amid the uncertainty and the pressure from higher import prices has also reflected in near-tenor payments, an FX salesperson at a large foreign bank said. 85 band on Tuesday. The central bank also likely conducted dollar-rupee sell/buy swaps, which would drain rupee liquidity from the banking system, traders said.
The central bank also likely conducted dollar-rupee sell/buy swaps, which would drain rupee liquidity from the banking system, traders said. The swaps cushioned dollar-rupee mid-to-far tenor premiums, lifting them off the day's low. Asian currencies were mixed while technology stocks powered stock markets higher even as stocks in Mumbai lagged, hurt by the lack of AI-linked wagers that have charged regional shares. 5.
"Price action has reinforced our view that near-term risks for the dollar remain skewed to the upside," analysts at ING said in a note. com)