India’s c. bank steps in to stabilise rupee – sources

The Indian central bank has sold dollars through state-run banks to support the rupee on Thursday, as the currency weakened due to dollar bids from importers and foreign banks, three traders told Reuters.

The Indian rupee was trading at 86.48 against the US dollar, a decrease of 0.1 per cent as of 12:40 p.m. IST. Earlier in the week, the rupee had reached a record low of 86.6475.

Traders observed state-run banks selling dollars around the 86.50 mark, possibly acting on behalf of the Reserve Bank of India (RBI).

A trader at a private bank noted that the central bank appears to be supporting the 86.50 level, suggesting that the USD/INR could decline by the end of the session. The dollar index stood at 109.1, with Asian currencies showing mixed performance.

Attribution: Reuters

Subediting: Y.Yasser