Market News
India central bank likely steps in after rupee buckles under oil shock - REUTERS
By Nimesh Vora
MUMBAI, June 13 (Reuters) - A surge in oil prices after Israel’s strikes on Iran sent the Indian rupee tumbling on Friday, prompting the central bank to step in and limit further losses, traders said.
The attack sparked a wave of risk aversion across markets. Asian currencies and equities dropped, U.S. equity futures fell, while safe havens rose. Brent crude surged by as much as 11% at one point.
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In response, the rupee slipped to 86.20 per dollar, its weakest level in two months. The Reserve Bank of India (RBI) likely intervened to curb volatility and support the currency. A trader told Reuters the central bank likely sold U.S. dollars via state-run banks, stabilising the rupee around the 86.05 level.
