RBI Intervention shields rupee in face of oil, hedging strain

State-run banks sold dollars on behalf of the Reserve Bank of India on Friday, pulling the rupee to 96.5625 per U.S. dollar, little changed on the day. The intervention came as Brent crude topped $100 a barrel amid Middle East supply concerns and as elevated hedging against rupee weakness pushed the currency near its May record low of 96.96. The RBI likely conducted spot dollar sales, NDF intervention, and dollar-rupee buy/sell swaps to offset liquidity impact, with net weekly forward dollar buying by merchants rebounding to about $7.1 billion in the week ending July 17.