Traders say the Reserve Bank of India likely intervened in the market on Monday as the rupee came under pressure from war and hedging fund pressures.

(1) Five traders stated that the Reserve Bank of India may have intervened in the foreign exchange market on Monday to alleviate the pressure faced by the Indian Rupee. (2) The Rupee's weakness is mainly influenced by two factors: firstly, the uncertainty arising from the war situation between the United States and Iran; secondly, capital flows related to corporate hedging. (3) Traders observed that state-owned banks are selling dollars, which is likely a signal that they are acting on behalf of the Reserve Bank of India. (4) The policy measures taken by the Indian government to strengthen the balance of payments have resulted in strong capital inflows, enhancing the central bank’s ability to support the Rupee through foreign exchange intervention.