MUMBAI – The Indian central bank likely intervened in the non-deliverable forwards market to support the rupee on Wednesday, which has been under pressure post the unexpected election outcome, seven traders said.
The rupee was last at 83.4475 to the U.S. dollar, up from 83.5300 in the previous session.
“RBI hammered (dollar/rupee) at open,” a trader at a large private sector bank said.
The “idea here again is that the RBI is letting the market know that we are there” to prevent “large, unwanted moves”, another trader said.
The rupee logged its biggest one-day percentage fall in a year on Tuesday following a narrower mandate for Prime Minister Narendra Modi’s alliance.
(Reporting by Nimesh Vora; Editing by Janane Venkatraman)
