MUMBAI (Reuters) – The Reserve Bank of India likely sold dollars through state-run banks on Friday after the rupee slipped below 82 to a record low against the dollar on concerns about the U.S. Federal Reserve’s rate outlook, traders told Reuters.
The rupee was last traded at 82.2675, down from 81.88 in the previous session, but from a session low of 82.33.
Traders said the rupee fell to 82.33 within the first 10 minutes of the opening and has been range-bound since then, likely due to the intervention of the Reserve Bank of India.
Four bankers and a brokerage firm confirmed the RBI’s intervention to Reuters.
“Basically, the Reserve Bank of India is making sense of it and again telling traders it won’t allow unilateral steps,” said one of the state-run bankers who confirmed the intervention.
“The intervention will have the effect (to the extent) that it will not allow the rupee to depreciate further, but it will not help the rupee to recover much.”