The Indian rupee clung to a thin trading range on Monday as likely central bank intervention blunted the impact of an uptick in oil prices and on dollar demand from non-deliverable forwards market contracts maturing.The rupee was hovering at 95.25 per dollar as of 11:30 a.m. IST, little changed from its close of 95.2075 in the previous session.State-run banks were spotted offering dollars, most likely on behalf of the Reserve Bank of India, traders said.The intervention carried echoes of the central bank's market activity over recent sessions, which have anchored the currency on the stronger side of 95.50 since July-end.Sporadic RBI interventions had earlier left traders confused about how much weakness policymakers were willing to tolerate. Those expectations have since started to turn, with traders acknowledging the impact of firmer central bank presence in the markets.There are "consistent (USD) offers" from state-run banks, signalling that the central bank is not inclined to let the rupee weaken from current levels for now, a trader at a private bank said.The dollar sales also blunted the impact of an uptick in oil prices and heightened demand to buy dollars at the central bank's daily reference rate - the daily benchmark used to settle contracts, which often attracts concentrated dollar buying or selling.Brent crude oil futures were hovering around $85 per barrel as uncertainty persisted over the reopening of the Strait of Hormuz, with Iran saying the United States must meet several conditions, even as Tehran and Oman moved into the final stages of agreeing on new shipping lanes."Technically, the 95.00-95.10 zone should continue to act as a solid floor for the (USD/INR) pair," said Amit Pabari, managing director at FX advisory firm CR Forex.Asian currencies were trading mixed while regional stocks gained, bouyed by trimming of wgaers on imminent rate hikes by the U.S. Federal Reserve.
Rupee anchored by central bank hand, traders watchful of oil ructions
The stability of the Indian rupee was evident on Monday, thanks to the proactive measures taken by the central bank. State-run banks actively provided dollars, reflecting an intervention strategy to uphold currency stability against the backdrop of surging oil prices and the demand from forward contracts. The Reserve Bank of India has effectively maintained the rupee above 95.50 since July. Concurrently, Asian currencies varied while regional stocks demonstrated positive movement.






