Despite Moody's rating downgrade, indicators point to rupee revival

Despite a sovereign rating downgrade by Moody’s, the rupee strengthened, and bond yields fell as markets shrugged off the downgrade.

Currency dealers say the Reserve Bank of India (RBI) intervened in the currency markets, and may have even bought some bonds anonymously from the secondary markets.

For now, it seems that the Reserve Bank of India (RBI) is not letting the rupee appreciate. The central bank is soaking up all the inflows coming due to stake sales in Reliance Jio and Bharti Airtel. In the week ended May 22, the RBI added $3 billion in its kitty to take the forex reserve