MUMBAI (Reuters) – The Indian central bank was likely selling dollars on Friday to limit the rupee’s losses and prevent it from hitting a record low, five traders told Reuters.
The rupee was quoted at 85.77 to the U.S. after dipping to an intraday low of 85.7950 in afternoon trade amid a fall in the Chinese yuan and an uptick in the dollar.
The domestic unit had hit a record low of 85.8075 last week.
State-run banks were spotted offering dollars, mostly likely on behalf of the Reserve Bank of India (RBI), around 85.77-85.79 levels, traders said.
The rupee could have drifted lower towards 86 if the RBI had not stepped in to stem the fall, a trader with a private bank said.
(Reporting by Siddhi Nayak and Dharamraj Dhutia; Editing by Mrigank Dhaniwala)
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