MUMBAI (Reuters) – The Indian central bank was likely selling U.S. dollars on Friday to support the rupee as the currency was pinned near its record low amid worries about elevated oil prices and outflows from local equities, four traders told Reuters.
The rupee was quoting at 83.9750 per U.S. dollar compared with its close at 83.9675 in the previous session. The currency had declined to its all-time low of 83.9850 last month.
“Mild” dollar offers from state-run banks were present near 83.98 levels, most likely on behalf of the Reserve Bank of India (RBI), one of the traders said.
The RBI has routinely intervened to help the rupee near these levels over the past two months.
Asian currencies were mostly higher on the day while the dollar index was little changed at 102.8.
(Reporting by Jaspreet Kalra, Nimesh Vora; Editing by Mrigank Dhaniwala)
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