A Reserve Bank of India (RBI) logo is seen inside its headquarters in Mumbai, India, April 6, 2023. REUTERS
MUMBAI, Nov 29 (Reuters) – India’s central bank was likely selling U.S. dollars on Friday to support the rupee near a key psychological support level of 84.50, four traders told Reuters.
The rupee was at 84.49 as of 9:15 a.m. IST, compared to its previous close at 84.4850.
State-run banks were spotted offering dollars near 84.50, levels, most likely on behalf of the Reserve Bank of India, the traders said. The rupee had weakened to its all-time low of 84.5075 last week.
“While they (RBI) are active at these level, the rupee may still weaken to a fresh record low but the decline is likely to quite marginal,” a trader at a private bank said.
The dollar index was lower by 0.2% at 105.8 while most Asian currencies rose. The rupee, meanwhile, was unable to benefit from a softer dollar in the face of persistent foreign portfolio outflows, traders said.
Reporting by Jaspreet Kalra, Nimesh Vora; Editing by Varun H K
