RBI most likely sold dollars to keep the rupee from dropping below the 83 mark, according to traders

According to traders who spoke to Reuters, the Reserve Bank of India probably sold dollars through state-run banks to stop the rupee from dropping below the 83-to-one US dollar mark.

The rupee was trading at 82.88 against the previous session’s closing of 82.7375 and off the day’s low of 82.94. The rupee hit a low of 82.9950 on the interbank order matching mechanism. Before state-run banks sold dollars, possibly for the Reserve Bank of India, the rupee fell from close to 82.89 to 82.99, according to three traders who declined to give their names to Reuters.

A trader at a private sector bank claimed that the RBI is to blame for how the rupee rebounded from 83 and the offers made by state-run institutions.

This news was written by Ms. Pujari Dharani, Research Assistant, All India Legal Forum.

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