India’s RBI Steps Up Support for Rupee, Bonds as Oil Swings

India’s central bank may play a bigger role in both currency and bond markets as volatility in crude oil prices raises the risk of higher inflation and putting pressure on government finances, analysts say.

The Reserve Bank of India has stepped up intervention in offshore and domestic markets to support the rupee as it slid to a record low. Late Friday, the RBI said it will buy 1 trillion rupees ($10.9 billion) of bonds from the open market this month, adding to the screen-based purchases carried out in recent weeks.