New Delhi, June 19 -- The Reserve Bank of India (RBI) is believed to be utilising the recent strengthening of the rupee to rebuild foreign exchange reserves and gradually manage its sizable short dollar forward position, according to market participants.

RBI Uses Rupee Strength To Rebuild Forex Buffers

The rupee has strengthened for five straight sessions, gaining around 1.5 percent against the US dollar amid easing crude oil prices and sustained foreign inflows following reports of a US-Iran agreement to end hostilities and pursue a peace deal.

Dealers estimated that the RBI purchased USD 1-2 billion on Thursday after absorbing USD 2-3 billion the previous day, reported Business Standard.

Rupee Recovers Despite Fed's Cautious Stance...