Trader: The Reserve Bank of India intervenes in the foreign exchange market to support the Indian Rupee.

According to informed sources, the Reserve Bank of India is intervening in the foreign exchange market by selling dollars domestically to support the rupee. The US dollar/Indian rupee rate briefly rose by 0.1% to a high of 88.7300, approaching the historical high of 88.8050. The sources stated that the intervention is intermittent and not as large in scale as when the bank sold a large amount of dollars last month. A spokesperson for the Reserve Bank of India has not yet responded to emails.