BRICS India Accused of Dumping US Dollars to Protect the Rupee

Is BRICS member India manipulating the currency market? Allegations are surfacing that India has been aggressively selling US dollars to prevent the Rupee from plummeting against the powerful US dollar. This isn\'t the first time. In fact, BRICS member India is accused for the third time in a year of dumping US dollars to keep the Rupee from falling.

The accusation comes as the US dollar hammered the Indian Rupee, pushing it towards an all-time low. Reports state that India aggressively sold US dollars, and state-run banks reportedly dumped billions of US dollars to stabilize the rupee. Reuters confirmed these actions, citing traders who observed deliberate moves to cap the Rupee\'s decline. This is speculation points towards the Reserve Bank of India (RBI) as one of the potential players involved in preventing the rupee from crashing against the US dollar.

The implications of such market intervention are significant. While India\'s central bank aims to maintain economic stability, accusations of currency manipulation can raise concerns about fair trade practices and potentially strain international relations.

Adding complexity to the situation is the ongoing discussion surrounding a potential BRICS currency. Amidst these dumping accusations, "India is trying to act innocent: There has been no decision by the so-called BRICS block about creating a common currency to reduce usage of the dollar," India’s central bank chief said.

The question remains: Is this legitimate market intervention or a deliberate attempt to artificially prop up the Rupee? Only time, and further investigation, will tell the full story of whether BRICS member India was accused of market intervention to keep the Rupee from ending at a low against the US dollar.