Worried about the weakening Rupee? Recent reports suggest BRICS member India may have aggressively dumped US dollars to limit further losses. On Monday, the USD vs INR trade reached a worrying all-time high of 83.40, prompting action from the Reserve Bank of India (RBI). Four traders told Reuters the Reserve Bank of India likely sold U.S. dollars on Monday to curb losses in the rupee, as the currency opened trading near its lifetime low. Some reports state that India aggressively sold US dollars in September to prevent the Rupee from reaching new lows against the US dollar. State-run banks reportedly dumped billions of US dollars to stabilize the rupee.

Insiders confirmed these actions to Reuters, citing deliberate moves to cap the Rupee's decline. This alleged market intervention by BRICS country India raises questions about its independent monetary policy. While some BRICS nations advocate for de-dollarization, India doesn't necessarily follow the hardline position of its partners on monetary issues. Contrary to the perception of a united front, India's actions appear aimed at stabilizing its own currency, regardless of broader BRICS objectives. The U.S. President reiterated his intent to impose 100% import tariffs on BRICS nations (Brazil, Russia, India, China, and South Africa) if they moved to reduce their reliance on the dollar, adding further pressure to the situation. Is this recent activity a short-term measure, or a sign of India's evolving relationship with the US dollar?