India central bank likely sold dollars via state-run banks

MUMBAI: The Indian central bank is likely selling dollars via state-run banks to prevent the rupee from slipping to a record low, three traders told Reuters on Monday.

The rupee was at 83.0850 to the dollar, marginally higher than its close of 83.1025 on Friday.

The Reserve Bank of India (RBI) likely sold dollars on the interbank order matching system before the normal OTC open time, traders said.

A treasury head at a foreign bank said the RBI probably was active in the non-deliverable forwards.

“The price action clearly indicates another round of intervention,” a fx spot trader said.

“We would have opened much higher (on USD/INR) had it not been for the RBI.”