Indian central bank likely selling dollars to support rupee, traders say

MUMBAI: The Indian central bank was likely selling dollars to support the rupee as the currency lingered near its all-time low on Monday, pressed by sustained outflows from local stocks, five traders told Reuters.

The rupee was nearly unchanged on the day at 84.39 compared with its close of 84.3950 in the previous session.

The currency had weakened to its all-time low of 84.4125 last week.

Indian rupee nearly flat; central bank intervention supports as equities stay tepid

State-run banks were spotted offering dollars near 84.40 levels, most likely on behalf of the Reserve Bank of India (RBI), the traders said.

The local currency is under pressure amid weakness in local stocks even as most Asian currencies nudged higher, comforted by a pause in the dollar index’s searing rally spurred by Donald Trump’s victory in the US presidential elections.

Traders expect the rupee to weaken to 84.50 gradually this week with the central bank expected to smoothen any sharp moves.