According to informed traders, the Indian central bank is actively selling US dollars in the domestic foreign exchange market to support the rupee's exchange rate. These traders requested anonymity as they are not authorized to discuss the matter publicly.

The USD/INR pair rose 0.1% to 95.7350.

A spokesperson for the Reserve Bank of India did not immediately respond to an email seeking comment.

It is worth noting that over the past few weeks, the Indian central bank has been conducting regular interventions in the foreign exchange market, and the historical volatility indicator for the dollar against the rupee has dropped to its lowest level since January.