The Reserve Bank of India appears to have intervened in the foreign exchange market to curb the rupee's decline

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Investing.com – According to Reuters on Monday, as rising oil prices triggered market concerns about the outlook for the Indian economy, the Reserve Bank of India (RBI) allegedly intervened in the foreign exchange market on Monday to prevent further depreciation of the rupee.

On Monday, the USD/INR exchange rate rose nearly 0.7%, to 95.071 rupees, remaining near recent historical highs.

On Sunday, Indian Prime Minister Narendra Modi called on the public and businesses to conserve fuel, further fueling market worries about the economic impact of ongoing conflicts in the Middle East.

India is highly dependent on oil imports, and the rise in crude oil prices and supply disruptions caused by the US-Israel war against Iran have put greater downward pressure on the Indian economy.

The Reserve Bank of India previously intervened in the currency market in April, implementing short-term restrictions to curb speculative behavior and help the rupee recover from its historic lows. However, since the outbreak of the Middle East conflict, the Indian rupee has continued to decline.

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