Dollar firms up after RBI said it stepped in

Dollar has finally clawed back against the rupee following a reported intervention by the Reserve Bank of India.

RBI Deputy Governor Rakesh Mohan said the central bank is looking at a vibrant forex market while it is still keen to clamp down the volatility. Dollar was trading weak globally after weak consumer price index, or CPI, data came out.

Mohan added, “We have followed a consistent policy since the currency became convertible and are looking at stability and exchange rate to reflect demand and supply conditions.”