STOCKS | Indian Rupee Hits Two-Month High After RBI Intervention

The Indian rupee rose to a two-month high after the Reserve Bank of India sold dollars and offset the impact of higher oil prices on the currency. According to Sina Finance, the dollar fell 0.3% against the rupee to 94.9075. Brent crude rose for a second straight session and topped $91 a barrel as tensions between Iran and Israel escalated, adding uncertainty to energy transport through the Strait of Hormuz. HDFC Securities foreign exchange analyst Dilip Parmar said the rupee was initially lifted by the RBI's intervention in offshore and onshore markets, but importers treated every pullback in the dollar-rupee pair as a buying opportunity. The dollar's 95 level has important psychological significance for buyers, and uncertainty around geopolitics and oil has made that level even more important. Inflows from overseas foreign-exchange deposit schemes, together with RBI intervention, also supported the rupee. India's 10-year government bond yield rose 1 basis point to 6.96%. ICICI Bank economists led by Samir Narang said in a report that the yield is likely to trade in a 6.85%-7.00% range in the short term, while traders are closely watching developments in West Asia.